Bengaluru: The Union Budget for fiscal 2019-20 would boost innovation and form the bedrock of the country’s digital economy," leading e-tailer Flipkart Chief Executive Kalyan Krishnamurthy said on Friday.

Lauding the government's commitment to digital India, Krishnamurthy said the impetus to start-ups, micro, small and medium enterprises (MSME) and Farmer Producer Organisations (FPOs) would form the backbone of the economy.

"The government's vision on bridging the rural-urban divide with internet penetration will be pivotal in transforming India into a $5 trillion economy," he said in a statement here.

In May 2018, global retail giant Walmart acquired 77 per cent equity stake in the city-based Flipkart for a whopping $16 billion to foray into the country's burgeoning e-commerce market.

Lauding the tax reduction on electric vehicles (EVs) from 12 per cent to 5 per cent, the top executive said the relief would encourage the people to prefer these over fuel-based vehicles to promote green transportation with zero emission.

On the Finance Minister Nirmala Sitharaman's proposal to invest a whopping Rs 100 lakh crore in infrastructure over the next 5 years, Krishnamurthy said such a huge spend augured well for job creation and boosting demand, manufacturing and consumer income.

"As the government pushes for ease of doing business for MSMEs and industries, we will be happy to connecting millions of them (MSME) sellers, manufacturers and artisans with consumers cost effectively," he added.

The proposal to set up a National Research Foundation, addressing challenges faced by start-ups and transforming the education system would improve the quality of life and living standards.

As one of the largest e-commerce players, the 12-year-old Flipkart enables thousands of consumers, sellers, merchants and small businesses to transact about 80 million products across 80 categories, including smartphones, books, consumer electronics, furniture, fashion and lifestyle.