FMCG:
Increased allocation for rural infrastructure: Improved rural infrastructure like roads and cold storage facilities could enhance supply chain efficiency and reduce wastage, potentially increasing demand by 10-15% and generating 1-2 million jobs in construction, logistics, and related sectors. This could include jobs in building roads, operating cold storage facilities, and managing agricultural supply chains. MDs/CEOs of several prominent FMCG firms have already expressed concerns about the slowdown in rural demand
Support for domestic manufacturing: Incentives for local production of raw materials and packaging through initiatives like the Production Linked Incentive (PLI) scheme for the food processing industry can attract investments of Rs. 5,000-10,000 crore and create up to 1 million jobs in manufacturing and allied sectors. For instance, the PLI scheme for food processing has the potential to create 5 lakh jobs in food processing units and related industries
Direct benefit transfers: Schemes like subsidies for LPG (cooking gas) cylinders and Ujjwala Yojana can increase disposable income and drive demand by an estimated 5-7%, leading to indirect job creation in various consumer-driven sectors like agriculture, retail, and manufacturing.
In urban and tier-1 cities, the number of gig workers has been steadily rising wherever e-commerce and hyper-local delivery have grown. Governments must endeavor to have labor laws recognize the gig economy as a legitimate workforce. The developing digital economy and its labor force would suffer if a legislative framework for gig workers is not swiftly established.
Retail:
Simplification of GST for online and offline businesses: A unified and simplified GST regime can create a level playing field and boost compliance, potentially increasing formalization in the retail sector by 15-20%, impacting the sector by Rs. 15,000-20,000 crores.
Relaxation in FDI norms for multi-brand retail: Allowing greater FDI in multi-brand retail could attract Rs. 20,000-30,000 crores in investments and create 1-2 million jobs.
Infrastructure development for e-commerce: Improvement of logistics and delivery infrastructure across India can benefit both e-commerce businesses and consumers, potentially reducing delivery costs by 10-15% and expanding the e-commerce market by Rs. 20,000-25,000 crores within 3 years. This could lead to significant job creation in e-commerce logistics, warehousing, and related sectors.
By 2027, internet penetration is expected to reach 80%. 60% of MSMEs use e-payments, such as online banking and UPI. By 2027, e-payment penetration is expected to reach 70%. But only 6% of MSMEs actively sell through e-commerce platforms. Approximately 4 million digital suppliers may generate approximately 35 million new jobs by FY2027. To promote digital commerce, the government ought to invest heavily in ONDC and digital infrastructure development.
E-commerce:
Focus on digital infrastructure: Development of a robust national digital infrastructure with affordable internet access in rural areas can increase e-commerce penetration and create up to 5 lakh jobs in digital service delivery and rural e-commerce businesses.
Simplified regulatory framework: Streamlining regulations and promoting transparency in e-commerce platforms can boost investor confidence and attract Rs. 5,000-10,000 crores in investments, potentially creating 2-3 lakh jobs across the e-commerce ecosystem.
Skill development for the e-commerce workforce: Training programs for skills like digital marketing, logistics management, and data analytics can improve efficiency and attract a skilled workforce, potentially creating up to 1 lakh jobs in e-commerce specific roles.
Support for MSMEs in e-commerce: Initiatives like providing easier access to financing and training in online marketing can help small businesses leverage e-commerce platforms and create significant job opportunities in e-commerce enabled MSMEs.
