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Mobiles to account for 80 per cent of e-retail by 2020: Study

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Chennai: Share of e-commerce purchases made through mobile phones has gone up to 70 per cent in 2017 with data charges becoming more affordable. The share of mobile purchases is expected to touch 80 per cent by 2020, finds a study.

The higher usage of mobile phones for purchases is likely to see the launch of mobile-only formats of e-commerce companies.

Indian e-tailing consumers are getting more and more habituated with ordering through mobile phones. The share of gross merchandise value earned through mobile apps and mobile websites accounted for nearly 70 per cent in 2017, found a study by RedSeer Consulting.

 

The share has been consistently growing over the past few years. From 55 per cent in 2015, it had come up to 65 per cent in 2016 and then to 70 per cent in 2017. The share is likely to touch 80 per cent by 2020, the study found.

“This was powered by increasing usage of smartphones in India and falling rates of data due to the effect of players like Jio,” says Ujjawal Chaudhry, engagement manager, e-tailing, RedSeer.

“We feel this trend would continue, as new set of consumers who would be arriving in the platform would largely be from Tier 2+ cities. These customers use mobile phones primarily to place orders,” Chaudhry said.

Sensing the huge potential of mobile phones in driving e-commerce sales, some of the players had switched to mobile-only format a few years back. In 2015, Myntra had pulled out its website and turned mobile-only.

According to sources, the company had taken this decision when it was getting about 80 per cent of its traffic and 60 per cent of sales through its mobile application.

Mukesh Bansal, co-founder of Myntra, had then said that growth on the mobile platform has been rapid because fashion shopping was quite impulsive. The firm also wanted to have more loyal customers who would download the app of the company on their mobile phones.

Industry watchers find that there are a few benefits of the mobile-only strategy. This helps the company easily push notifications, the loading time is lesser compared to website, consumption of data is lesser and mobile phones provide better shopping experience and convenience.

However, Myntra was much ahead of its time. In 2015, the share of mobile phone purchasers was much lesser. Myntra returned with its website in 2016 after finding that it was losing customers.

However, the industry finds that mobile-only e-commerce platforms would probably do much better now as customers have become more comfortable transacting through apps. Also, downloading of mobile apps has grown significantly in the recent past.


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Cabinet clears setting up of centralised GST appellate authority

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New Delhi: The Union Cabinet on Wednesday approved setting up of a centralised Appellate Authority for Advance Ruling (AAAR) under the goods and services tax that would decide on cases where there are divergent orders at the state level.

The setting up of a centralised AAAR would require amendments to the GST Acts. The centralised authority as an appellate body will only take up cases wherein the Authority for Advance Ruling (AAR) of two states have passed divergent orders.

The Goods and Services Tax (GST) Council, headed by Finance Minister Arun Jaitley, and comprising state counterparts, in December decided to establish the centralised AAAR.

 

“The Cabinet has cleared the GST appellate authority,” a source said after the meeting of the Cabinet headed by Prime Minister Narendra Modi.

In view of the confusion created by contradictory rulings given by different AARs on the same or similar issues, the industry had been demanding a centralised appellate authority that could reconcile the contradictory verdicts of different AARs.

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Urbanisation to be big driver of Indian economic growth: Kant

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Davos: Urbanisation will be a big driver of economic growth in India going forward, supported by favourable macroeconomic factors, accelerated infrastructure building and continuing reforms, NITI Aayog CEO Amitabh Kant said.

Speaking here at an event on sidelines of the World Economic Forum Annual Meeting, he also said the Indian economy may even exceed the IMF growth forecast of 7.5 per cent for the country.

Kant said IMF has forecast 7.5 per cent growth for India despite a gloomy outlook for the global economy and this itself is good, though there are expectations that this estimate would be surpassed. He said India is giving a big push to urbanisation with more than 100 smart cities being developed.

 

The country is also using technology in a big way to change the way business and governance is done, he added. Besides a massive infrastructure building is happening, bank credit flow has rebounded and macroeconomic factors like inflation and fiscal deficit are also being supportive, Kant said.

DIPP Secretary Ramesh Abhishek noted that states are competing with each other to attract investments and all political parties have adopted the economic reform process. He listed various reform initiatives undertaken in India, including on areas like ease of doing business, FDI, manufacturing and taxation.

They were speaking at Institutional investors’ breakfast roundtable, organised by the industry chamber CII and Kotak Mahindra Bank. Other participants included CII Director General Chandrajit Banerjee and leaders from Indian and foreign companies.

On questions about some persisting issues in doing business including on tax and insolvency related issues, Abhishek said a lot of efforts have been put in to remove all bottlenecks and starting a business doesn’t take more than a day. Besides, special provisions have been made for startups and angel investors, he added.

Kant said efforts are also being made to remove all physical intervention and digitise the entire process of inter-ministerial and inter-department consultations to fast-track the decisions.

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India will surpass China, says Raghuram Rajan

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Davos: India will eventually surpass China in economic size and will be in a better position to create the infrastructure being promised by the Chinese side in South Asian countries, former RBI Governor Raghuram Rajan said.

Addressing a session on Strategic Outlook for South Asia, Dr Rajan said that the Indian economy would continue to grow while growth rate is slowing down in China.

“Historically, India had a bigger role in the region but China has now grown much bigger than India and has presented itself as a counter-balance to India in the region,” Dr Rajan said at the WEF Annual Meeting 2019.

 

“India will become bigger than China eventually as China would slow down and India would continue to grow. So India will be in a better position to create the infrastructure in the region which China is promising today. But this competition is good for the region and it will benefit for sure,” he said.

The comments assume significance with China working on a lot of infrastructure projects across the region. In 2017, India became the sixth largest economy with a GDP of $2.59 trillion while China was the second large with a GDP of $12.23 trillion.

At the same session, Nepal PM K.P. Sharma Oli cited collaboration with China as well as India as reasons for the economic growth.

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