India E-commerce Segment Sharply growing over the previous year and projected the fiscal growth will touch up to USD 33 billion this year. Online Retail Business growth 19% over 2016-17 said in the Economic Survey 2018 .
In 2017, online retail grew to $17.8 billion in gross merchandise value (GMV) from $14.5 billion last year, a 23 percent increase, Livemint reported on Thursday while citing RedSeer Management Consulting, market research and consulting firm. According to the financial daily, the country’s e-commerce market picked up sharply in the second half of 2017 after a period of nearly 18 months.
A start up India initiative push the eCommerce sector and many companies to reach their limit. India IT sector and Business process outsourcing (BPO) seen a growth of 8% to $ 140 Billion excludes the e-commerce and hardware sector in the 2016-17 fiscal year. E-commerce driven company like Flipkart, Amazon India, and Paytm saw a high growth rate. Snapdeal sales collapsed after it cut cost as proposed to Flipkart. Due to heavy discounting on sales from Flipkart and Amazon, they boost their growth in the eCommerce space .
“To further promote this sector, many initiatives have been taken, which include the establishment of BPO Promotion and Common Services Centres to help create digital inclusion and equitable growth and provide employment to 1.45 lakh persons, mostly in the small towns.
Setting up a separate Northeast BPO promotion Scheme with 5000 seats and having employment potential of 15000 persons; preparing the draft Open Data Protection Policy law; besides long-term initiatives like Digital India, Make in India, Smart Cities, e-Governance, push for digital talent through Skill India, drive towards a cashless economy and efforts to kindle innovation through Start-up India,” the survey said.
The next frontier on the ease of doing business is addressing pendency, delays and backlogs in the appellate and judicial arenas. These are hampering dispute resolution and contract enforcement, discouraging investment, stalling projects, hampering tax collections but also stressing tax-payers, and escalating legal costs.