India's Budget 2024: Boosting E-commerce and Exports
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Budget 2024: Finance Minister Nirmala Sitharaman proposes TDS rate reduction on e-commerce operators - Times of India
Finance Minister Nirmala Sitharaman has proposed to reduce the TDS rate on e-commerce operators from the existing 1 per cent to 0.1 per cent. The union budget 2023-24 was tabled in the parliament today. This is the new government's first budget and is being considered the action plan for the Modi 3.0 government. "A comprehensive review of the customs duty structure over the next 6 months.TDS rate on e-commerce to be reduced to 0.1%. I propose that two tax exemption regimes for charities merge into one. I propose to decriminalize TDS delay up to the filing of tax date," Sitharaman said during her budget speech. The finance minister in her speech also announced that it 'is proposed that Equalisation Levy at the rate of 2 percent of consideration received for e-commerce supply of goods or services, shall no longer be applicable on or after 1st August, 2024." Further, the FM announced the establishment of dedicated e-commerce export hubs to boost online trade. India's e-commerce exports currently stand at a modest $2 billion, compared to China's $350 billion. However, the potential for growth is huge, with estimates suggesting that India's e-commerce exports could reach $350 billion by 2030. While challenges such as banking issues persist, the government's initiative is seen as a crucial step towards tapping into this massive opportunity. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.
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Union Budget 2024: India to set up e-commerce export hubs - Times of India
India is set to establish dedicated e-commerce export hubs to boost online trade, Finance Minister Nirmala Sitharaman announced in the Union Budget. The government aims to create a streamlined regulatory and logistics environment to support the growing e-commerce sector. The Directorate General of Foreign Trade (DGFT) is already collaborating with the Reserve Bank of India and other ministries to implement measures that will facilitate e-commerce exports.These hubs are expected to offer a range of services, including export clearances, warehousing, customs clearance, returns processing, and product handling. Industry experts believe that these hubs will function as bonded zones, simplifying the export and import of e-commerce goods and significantly reducing re-imports. The private sector is expected to play a key role in developing and operating these facilities. India's e-commerce exports currently stand at a modest $2 billion, compared to China's $350 billion. However, the potential for growth is immense, with estimates suggesting that India's e-commerce exports could reach $350 billion by 2030. While challenges such as banking issues persist, the government's initiative is seen as a crucial step towards tapping into this massive opportunity. The move is expected to create new jobs, stimulate economic growth, and enhance India's position as a global e-commerce player. The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.
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Finance Minister Nirmala Sitharaman announces measures to support e-commerce and exports in India's interim budget for 2024. Key proposals include TDS rate reduction for e-commerce operators and establishment of e-commerce export hubs.
TDS Rate Reduction for E-commerce Operators
In a move to boost the e-commerce sector, Finance Minister Nirmala Sitharaman has proposed a significant reduction in the Tax Deducted at Source (TDS) rate for e-commerce operators in India's interim budget for 2024. The TDS rate is set to be lowered from 1% to 0.5% for e-commerce participants
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. This reduction aims to provide relief to small businesses and individual sellers operating on e-commerce platforms, potentially leading to increased participation and growth in the digital marketplace.Establishment of E-commerce Export Hubs
In a parallel initiative to bolster India's export capabilities, the Finance Minister announced plans to set up dedicated e-commerce export hubs across the country
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. These hubs are designed to streamline and facilitate export processes for small businesses engaged in e-commerce. By providing centralized support and infrastructure, these hubs aim to simplify the complexities often associated with international trade and shipping.Impact on Small Businesses and Artisans
The proposed measures are expected to have a significant positive impact on small businesses, artisans, and weavers across India. The reduced TDS rate will help improve cash flow for these entities, while the export hubs will open up new international markets for their products. This dual approach is aimed at empowering local businesses to compete on a global scale and expand their customer base beyond national borders
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Digital India and Economic Growth
These budget proposals align with the government's broader Digital India initiative and its focus on economic growth through digital means. By reducing tax burdens and creating supportive infrastructure for e-commerce exports, the government aims to accelerate the adoption of digital platforms among businesses of all sizes. This strategy is expected to contribute to India's economic growth by tapping into the vast potential of the global e-commerce market
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.Future Outlook
The announcements made in the interim budget signal the government's commitment to fostering a conducive environment for e-commerce and exports. As these measures are implemented, it will be crucial to monitor their effectiveness in achieving the intended goals of boosting small business participation in e-commerce and increasing India's share in global exports. The success of these initiatives could pave the way for further policy reforms and investments in the digital economy sector in the coming years
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