Do you need a brief overview of what will, might or will not, affect your business the most? Then this one is just for you.
Abolition of FIPB (Foreign Investment Promotion Board) that offers a single window clearance for applications on FDI in India that are under the approval path is a big step towards making the system transparent. However, 90% of FDI has been coming in through the automatic route. The FDI policy will be further liberalised down the lane. Maintaining Forex reserves at $361 billion and increasing flow of FDI by 36% is applause worthy.
Mom and pop retailers have to up their game to earn higher margins. Supermarkets have mushroomed even in areas that were once remote. And other factors like investment in digitisation will, in ways not-so-apparent aid the shift from unorganised to organised retail.
Cheer up! With 96% of individuals falling under the less than 5 Lakhs tax bracket, the reduction in personal tax will increase the amount of disposable income in the hands of the individual encouraging spending, it will bring back the confidence and optimisation we’ve lost over the previous year. This should be a good time to reach out and spend on marketing and advertising your product, make adjustments and corrections in pricing policy of the products and services you offer, early during the year to suit purchasing trends.
This will take some weight off their shoulders until they are up and running. Also allowing them to able to afford better resources. More often than not, talent, to develop better products and provide better services. With the income tax for small companies with an annual turnover of up to Rs 50 crore being reduced from existing 30% to 25%, the startups that mostly serve these business should gain traction while investing in recognising untapped audience and unventured markets, not limited to geography. Digitisation, if implemented as promised, will be your trump card along the way.
THE DIGITAL INITIATIVE
Accessibility and awareness means potential customers! Advertisements are not the only effective way of reaching out. Anything informational, educational or precautionary will do great for a first time audience! Learning is a necessity, entertainment is not.
It will create all the much needed jobs and have an enormous on the country’s wholesale/retail industry. Better infrastructure is a boost to the formal economy. This will also streamline the agricultural supply chain. Companies will forward and backward integrate to produce better quality and helping them reach markets.
Not only will it accelerate the GDP, but create opportunity. This might be a good reason to integrate for wholesale/retail. The targets, if achievable should double the income of farmers, accelerating growth.