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Highlights of budget 2013 & ecommerce’s reaction to budget.
31-05--2013, 02:25 PM
Post: #1
Highlights of budget 2013 & ecommerce’s reaction to budget.
Highlights of budget 2013 & ecommerce’s reaction to budget.

[Image: 4861f52688373_budgetupdate.jpg.999xx.jpg]

Micro, small and medium enterprises (MSMEs), start ups and angel investors’ fraternity feels a sigh of relief from this year’s budget as Finance Minister, Mr. Chidambaram, presents a budget in quite contrast to last year’s budget where investing in unlisted firms were to be taxed. The proposal has come more as a shock than a surprise as most angel investors invest in small, unlisted firms.

Highlights

FM didn’t disappoint SMEs and angel Investors as he allowed tax exemption for angel investments which makes listing easy for SMEs with exemption of having IPO, allowing MSMEs to continue enjoying the benefits and preferences three years after they grow out of this category
An announcement has been made of extending support to technology incubators but restricted to only academic incubators.
One of the vital announcement was increasing the refinancing capacity of the Small Industries Development Bank of India (SIDBI) from Rs 5,000 crore to Rs 10,000 crore and proving Rs 100 crore to India Micro finance Equity Fund.
Although Industry leaders have welcomed the decision, there is still apprehension on the implementation of the decision of angel investors being registered under ‘Alernative Investment Fund (AIF) category I’ which has tax pass through status.
Reaction of the E-Commerce Industry

We welcome the focus on zero-excise route for readymade garments. This definitely is a positive move for the textile industry in general and will definitely help boost the e-retail space. The budget is only a directional statement; the key next step will be the execution of the statement of intent outlined in the budget. To me, these measures will help build a sustainable market in the country. By Manu Kumar Jain, Co-founder, Jabong.com
We welcome the progressive move taken by the finance ministry to plug the current account deficit and focus on foreign investments as a viable measure. Assured investments in infrastructure and connectivity of rural areas will further boost our economy and provide scope for the ecommerce sector to expand its services to all corners of the country. By Mukesh Bansal, CEO and Co-Founder, Myntra
From an e-commerce perspective, ‘Uniform GST’ was a keenly awaited announcement. The current announcement from Finance Minister promising to introduce the draft bill and taking the issue forward is reassuring. However, given its importance to the Indian economy, I believe the centre must take a strong leadership position in this regard and ensure a solution is proposed and implemented at the earliest.Though the budget has given a big boost to investments and provided a chance for the private sector to spread its wings, a lot of things are yet to be answered and we are eagerly waiting for the Ministry’s next move. By Sachin Bansal, Co-founder and CEO, Flipkart
To increase the refinancing capability of SIDBI from the current level of 5,000 crore to 10,000 crore per year is likely to encourage new entrepreneurs to set up their own businesses. This move will also result into generation of more employment opportunities. Implementation of the comprehensive GST is still under consideration stage. This needs to be operationalized soon. By Kiran Murthi, CEO, getitBazaar.com
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