India’s online retail industry is often dubbed as India’s sunrise sector, given the rapid pace of growth it has witnessed over the last half a decade, during which it has gone from being a beginner to becoming a force to reckon with.
According to research agency CRISIL, e commerce in India has grown from Rs 15 billion revenues in 2007-08 to Rs 139 billion in 2012-13, making it a compounded annual growth rate (CAGR) of over 56 per cent.
The drivers of this growth have primarily been the increased Internet penetration, and improving purchasing powers. We expect the government to provide an eco-system that boosts these two drivers of demand. We expect a pro-growth budget and policies that help drive spending in the economy. Recently reports said that the government is planning measures to regulate and monitor the e-tail segment. While there is nothing wrong with this in principle, we hope the regulation doesn’t get exorbitant and disproportionate; they shouldn’t stifle the growth of the sector.
We also look forward to policies and boosts to the manufacturing of apparels in India under the ‘Make in India’ push. Reduction in excise duty, and creating a friendlier environment to local manufacturing will help retailers of apparels – both online and brick & mortar – to sell at more affordable rates.