Clarity on FDI & GST roadmap
The E-Commerce industry seeks the budget to give more clarity on FDI policies and GST roadmap. Taxes such as CST, VAT, excise and service taxes among others needs to simplified for smooth functioning of the industry. Maximum job opportunities can be generated in the industry, with relaxation of FDI limit. Clarity in processes and systems and Single Window System will help the sector flourish at faster pace.
VCs Interest
Considering that E-Commerce companies also have to take care of Venture Capitalists, who have invested in the venture, it is important that the Govt. ensures implementation of aspects such as funds-of-funds and other measures introduced in the action plan and help entrepreneurial ventures grow. The Govt. should look at increasing the tax holiday period from three years as hardly any start-up become profitable in just three years of inception.
Gems & Jewellery Sector
The Indian jewellery manufacturers and retailers make a significant contribution of 6 to 7 percent towards Indian GDP, creating value addition of Rs 100,000 crores and also contribute 14 per cent towards exports.
The upcoming Budget should provide tax incentives and relief measures for the labour-intensive gems and jewellery sector to give a boost to the jewellery manufacturing sector as well as exports.” he added. The brand is currently exporting to international markets through its online presence on international marketplaces such as Amazon.com, Amazon.uk, Jadopado.com, etc.
The future channel expansion also includes opening of physical stores in international markets covering Gulf, US and European markets. We believe that Honourable Finance Minister will bring in some effective measures to bring down Gold Imports.
The Gems and Jewellery segment is also one of the top employment generating industries, where 90 percent of manufacturing is by karigars and 80 percent of retailing by independent jewellers.
Government initiatives
This budget should have some favourable reforms for players like Voylla.com, who have been contributing to Govt. initiatives such as Make in India and National Skill Development. We expect to see a raise in custom duty and a drop in excise duty on imitation jewellery.
The brand supports Make in India initiative and has opened up new avenues of employment for labours engaged in jewellery designing, as the brand has set up its state-of-the-art manufacturing facility in Jaipur, Rajasthan. While the Gold market might be witnessing a slump but the imitation jewellery market is offering these labour new employment avenues.
