Draft National e-commerce Policy-Highlights

The government discussing and is in process of developing regulations for the personal and non-personal data through the Draft National e-commerce policy. The policy highlights that the government have laid down the principles regarding the usage of data for development of any of the industry where such norms are not in effect. With the draft policy, the government put an adequate safeguard that seeks to prevent misuse and access of data by the unauthorized persons.


The draft policy states that, sharing of data for the industrial development will be encouraged and it will also provide for a sharing mechanism to regulate the data. Government will lay down the principles to use data for the purpose of developing any e-commerce, industry, consumer protection, economic security, national security and law enforcement. The draft policy seeks to safeguards the misuse and access of data by any unauthorized persons. The draft highlights that, government recognises the importance of data and needs to use data initiating from India for Indian entities first.

About e-commerce policy

The draft e-commerce policy was drafted and released by the Department for Promotion of Industry and Internal Trade (DPIIT). The e-Commerce Policy lays down several regulating strategies in order to address the issues regarding the data privacy, maintenance of level playing field and sector-Consumer protection.

What was the need for policy?

The average internet usage of the users in India have increased over time. In the year 2014, average monthly data consumption in India stood at just 0.26 GB per person which had increased to 4GB by 2017. This increase in the internet usage means that more data is being generated. Thus, the need for greater regulation was felt by prioritizing the privacy and consumer protection which in turn benefit the domestic economy. This policy was needed to ensure a competition in market in order to encourage entrepreneurship and innovation.




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