Recently, news has surfaced that the Indian government is preparing to unveil a national e-commerce policy. The aim of this proposed policy is to establish a conducive environment for the growth and development of the e-commerce sector, as well as to bolster exports. Initially proposed in 2018, the e-commerce policy’s draft was released in 2019. The Department for Promotion, of Industry and Internal Trade (DPIIT), which falls under the Ministry of Commerce and Industry, has underscored the need for a well-structured regulatory framework, technological progress, and efficient integration of the supply chain.
Main Points of the Upcoming E-Commerce Policy
The primary objective of the national e-commerce policy is to formulate a regulatory framework that simplifies business operations in the sector. The policy acknowledges the considerable export potential of India’s e-commerce industry, which is predicted to generate between 200 billion USD and 300 billion USD annually by 2030. With cross-border e-commerce exports anticipated to hit 2 trillion USD by 2025 globally, India is aiming to seize this growth opportunity.
Regulatory Body and Foreign Direct Investment (FDI)
The plan to establish a regulatory body specifically for the e-commerce sector is under consideration, but its actual implementation may take time. Local trader associations have been calling for a powerful regulatory body to enforce e-commerce regulations and curb infringements. Regarding FDI, it’s allowed completely in the marketplace model, but prohibited in the inventory-based model.
Addressing Trader Concerns
Traders have raised issues concerning the violation of e-commerce norms, such as unjust deep discounts and preferences shown towards select sellers. The proposed policy aims to resolve these problems and instil more transparency in the rules governing FDI in e-commerce. The Consumer Protection (e-commerce) Rules 2020 and the proposed amendments will be aligned with the e-commerce policy to ensure consistency.
Comprehensive Framework
The upcoming e-commerce policy will function as a comprehensive framework for the sector, assuring cohesion among several governing acts. Currently, the sector is regulated by the FDI policy, the Consumer Protection Act of 2019, the Information Technology Act of 2000, and the Competition Act of 2002. The aim of the new policy is to align these regulations and foster an environment conducive to the growth of the e-commerce industry.
Other E-Commerce Initiatives by the Indian Government
In addition to the proposed e-commerce policy, the Indian government has launched various other initiatives to boost the digital economy. The BharatNet project aims to provide internet connectivity to local bodies in every Panchayat, thus widening the reach of e-commerce in rural areas. The Open Network for Digital Commerce (ONDC) focuses on providing equal opportunities for Micro, Small, and Medium Enterprises (MSMEs) to flourish in digital commerce and democratize e-commerce. Additionally, the Digital India initiative has provided a strong impetus to other government-led initiatives, including Start-Up India and Aatmanirbhar Bharat, that have huge potential to achieve global success.