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Key provisions include the reduction of the TDS rate on e-commerce transactions from 1% to 0.1%, significantly enhancing liquidity for sellers. The budget also introduces new schemes for MSMEs to purchase machinery and equipment without collateral, increases MUDRA loan limits, and reduces the turnover threshold for TReDS registration, addressing the sector’s long-standing credit challenges.
New Delhi: Finance Minister Nirmala Sitharaman, on Tuesday, during her presentation of Budget 2024, has proposed to set up e-commerce export hubs in a public-private-partnership (PPP) mode. These hubs will streamline trade and export-related services, providing a comprehensive support system under one roof. The initiative is designed to empower MSMEs and traditional artisans to reach global markets.
Key provisions also include the reduction of the Tax Deducted at Source (TDS) rate on e-commerce transactions from 1% to 0.1%, significantly enhancing liquidity for sellers.
The budget also introduces new schemes for MSMEs to purchase machinery and equipment without collateral, increases MUDRA loan limits, and reduces the turnover threshold for TReDS registration, addressing the sector’s long-standing credit challenges.
Welcoming the announcement e-commerce players and industry experts shared their thoughts on the overall economic growth.
Sharing his views, Kalyan Krishnamurthy, CEO, Flipkart Group said, “The budget is a bold move to enhance India’s human and organizational capital, removing supply chain bottlenecks and supporting MSMEs. The reduced TDS rate will free up working capital, boosting sellers’ efficiency.”
On a similar note, Dhiresh Bansal, CFO, Meesho said, “Reducing TDS rates will improve liquidity for small businesses,
While a spokesperson from Amazon India said, “E-commerce exports represent a sunrise sector for India. The budget’s reforms, combined with our Amazon Global Selling program, will empower Indian MSMEs to reach global markets, moving closer to our goal of $20 billion in e-commerce exports by 2025.”
On the other hand, Dinesh Gulati, COO, IndiaMART Intermesh said, “The budget addresses critical credit access issues for MSMEs. New schemes and increased MUDRA loan limits will provide essential financial assistance, driving the sector’s growth and global competitiveness.”
Krishnamurthy believes this comprehensive and inclusive budget aligns with our nation’s aspirations to achieve ‘Viksit Bharat’ and lays a strong foundation for a prosperous and equitable society.
The Budget 2024’s focus on e-commerce and MSMEs is expected to drive significant growth, liquidity, and global market access, reinforcing India’s economic aspirations.