July 24 2024: The Internet and Mobile Association of India (IAMAI) welcomes the series of progressive changes announced by the Hon’ble Finance Minister Smt. Nirmala Sitharaman in the Union Budget 2024 that shall bolster the growth of India’s digital economy and start-up ecosystem.
The abolition of “angel tax” has been a longstanding demand of IAMAI and will undoubtedly boost investments and innovation in India’s start-ups. The withdrawal of the equalisation levy, another longstanding ask of IAMAI, is also a welcome move. The equalisation levy on payments received or receivable by e-commerce operators without a permanent establishment in India for online sales of products or services to an Indian resident led to an increased burden on Indian consumers, while also increasing the compliance burden of e-commerce operators. Its withdrawal will lead to a reduced burden on both consumers as well as e-commerce operators and improve the ease of doing business in India.
IAMAI commends the Union Government on its decision to reduce TDS on e-commerce operators from 1% to 0.1%, thereby improving cash flows and unblocking working capital for sellers. The formation of E-Commerce Export Hubs is another transformative step and will enable MSMEs and sellers to access international markets. Setting up E-Commerce Export Hubs will enhance the accessibility and efficiency of e-commerce exports and empower India’s many local sellers. In all, such measures will foster an ecosystem where digital sector in India can thrive, ensuring accessibility, efficiency and competitiveness across geographies.
The use of technology has successfully improved productivity and bridged inequalities in India’s economy over the past decade, and IAMAI appreciates the Union Government’s commitment to increasing the adoption of technology with a view to digitalize India’s economy. The proposed development of Digital Public Infrastructure applications in the areas of credit, e-commerce, education, health, logistics and MSMEs along with the focus on private sector driven research is likely to boost innovation and propel India towards its goal of a becoming a trillion-dollar digital economy in the next three years. Further, the industry welcomes the announcement to simplify the rules & regulations for FDI & overseas investments which will spur the growth of the digital economy.
IAMAI also welcomes the initiatives to facilitate employment, skilling and other opportunities for 4.1 crore youth and is keen to collaborate with the government on enabling these initiatives.
