{"id":51038,"date":"2019-08-08T16:49:51","date_gmt":"2019-08-08T11:19:51","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?page_id=51038"},"modified":"2019-08-08T16:50:01","modified_gmt":"2019-08-08T11:20:01","slug":"answered-discuss-e-commerce-regulation-in-india-do-you-think-india-should-revisit-its-e-commerce-policy","status":"publish","type":"page","link":"https:\/\/forumias.com\/blog\/answered-discuss-e-commerce-regulation-in-india-do-you-think-india-should-revisit-its-e-commerce-policy\/","title":{"rendered":"[Answered] Discuss e-commerce regulation in India. Do you think India should revisit its e-commerce policy?"},"content":{"rendered":"\n
Demand of the question<\/strong>
Introduction.<\/strong> What is e-commerce?
Body. <\/strong>E-commerce regulation and need of e-commerce policy. Features and issues of draft e-commerce policy.
Conclusion. <\/strong>Way forward. <\/td><\/tr><\/tbody><\/table>\n\n\n\n

E-Commerce is a business model \u201cenables a firm\/individual to conduct business over an electronic network, typically the Internet.\u201d The consumer and seller or service provider interaction gets better and efficient.<\/p>\n\n\n\n

E-commerce business in India:<\/strong><\/p>\n\n\n\n

  1. E-commerce can be carried out for\nboth wholesale trade or for retail trade (sale towards final consumption).<\/li>
  2. It can be either Business to\nBusiness (B2B) trading or Business to Consumers (B2C) trading.<\/li>
  3. There is no restriction on\nconducting e-commerce per se in India. However, certain restrictions exist, if\ne-commerce is being done by companies receiving FDI.<\/li>
  4. In India, 100% FDI under automatic\nroute is allowed in Business to Business e-commerce since 2000.<\/li>
  5. A distinction is made between single\nbrand retail (selling products of a single brand) and multi-brand retail with\nrespect to permission for FDI and e-commerce.<\/li><\/ol>\n\n\n\n

    Need for new e-commerce policy:<\/strong><\/p>\n\n\n\n

    1. There is no commonly accepted\ndefinition of e-commerce. Further, there is inadequate data on the trade of\ndigital products. Both these shortcomings require effective policy making in\nthe country.<\/li>
    2. The e-commerce market is expected to\nreach US$ 64 billion by 2020 and US$ 200 billion by 2026 from US$ 38.5 billion\nas of 2017. Thus there is a need for clearly laid-down rules for electronic\ncommerce in the country.<\/li>
    3. E- commerce is currently regulated\nby multiplicity of government departments such as IT Department, industrial\npolicy, revenue, and RBI. Hence, a national e-commerce policy would consolidate\nthe various norms and regulations to cover all online retailers.<\/li>
    4. With the increasing online frauds,\nthere is a need to strengthen the regulatory regime for protecting the consumer\nin the context of e-commerce<\/li><\/ol>\n\n\n\n

      Main provisions Draft e-commerce\npolicy:<\/strong><\/p>\n\n\n\n

      1. A common definition of electronic\ncommerce for the purposes of domestic policy-making and international\nnegotiations would be adopted.<\/li>
      2. It proposes a single legislation to\naddress all aspects of digital economy and a single regulator for issues\nrelated to FDI implementation and consumer protection. <\/li>
      3. It mandates localisation of data in\nIndia. The draft also says the government will have access to data stored in\nIndia for national security and public policy objectives.<\/li>
      4. The draft policy proposes 49% FDI\nunder the inventory model for Indian-owned and Indian-controlled firms to sell\nlocally-produced goods on their online platforms.<\/li>
      5. All active e-commerce portals in\nIndia will have to register with e-Central Consumer Protection Authority\n(CCPA). CCPA shall act as a nodal agency for intra-government coordination,\nchecking frauds within the industry, formulating regulations and more.<\/li>
      6. On the matter of discounts, the\ndraft policy suggests a period for every discount and offer, beyond which no\ne-commerce portal can be allowed to provide discounts.<\/li>
      7. It recommends Centralized\nregistration instead of local registration of e commerce companies.<\/li><\/ol>\n\n\n\n

        Issues in e-commerce policy:<\/strong><\/p>\n\n\n\n

        1. Due to mandatory supervision of\nCompetition Commission of India on Merger and Acquisition and regulation on\ndiscounts have led to apprehensions of return of license raj.<\/li>
        2. Data localisation norms in draft\npolicy can discourage international firms to invest in India.<\/li>
        3. The FDI provision restricted to\nIndian firms may Influence the much the needed FDI in general and e commerce\nindustry in particular.<\/li>
        4. The policy state that the Indian\ngovernment must have access to e-commerce data at all times. This is a\ndangerous as it allows state surveillance, in the guise of safeguarding the\nprivacy of Indian citizens.<\/li>
        5. The policy fails to distinguish\nbetween personal and collective data and treats all data as one whole. <\/li><\/ol>\n\n\n\n

          Thus e-commerce policy need a relook. It need to resolve data issue and also need to relook at regulatory provisions. Discounts regulation can impact the sector and overall growth of Indian economy.<\/p>\n","protected":false},"excerpt":{"rendered":"

          Demand of the question Introduction. What is e-commerce? Body. E-commerce regulation and need of e-commerce policy. Features and issues of draft e-commerce policy. Conclusion. Way forward. E-Commerce is a business model \u201cenables a firm\/individual to conduct business over an electronic network, typically the Internet.\u201d The consumer and seller or service provider interaction gets better and… Continue reading [Answered] Discuss e-commerce regulation in India. Do you think India should revisit its e-commerce policy?<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":49132,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-51038","page","type-page","status-publish","has-post-thumbnail","hentry","entry"],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/51038","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=51038"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/pages\/51038\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media\/49132"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=51038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}