The e-commerce has grown at an exponential rate in fast few years in India, along with that the need for a comprehensive policy on e-commerce has also grown to safeguard India’s interests globally. Discuss.
E-commerce is defined as virtual selling-buying of goods via electronic medium without physical initiation between seller and buyer.
Issues and need for e-commerce policy:
- Smoothen out taxation glitches in the era of GST (states want more control of goods sold and received).
- Domestic expansion made by transport/logistical glitches.
- Issues related to fraud.
- Payment related glitches – digital payments not fully adopted by the Indian population.
- Concerns regarding data – storage of data of domestic consumers and international users.
A comprehensive e-commerce policy should include:
- Smoothen out logistical bottlenecks – simplification of customs procedures for international clients.
- Tax compliance eased.
- Definite data storage guidelines in compliance of international standards (european GDPR).
- Security of online transactions to be ensured.
- Consumer protection – protection from frauds, misleading advertisements.
- Protection against predatory pricing, fair trade for physical stores.
The growth of e-commerce should be ensured by a proper regulatory environment and e-commerce policy.
Topics: GS-II: Government Policies and Interventions for Development in Various Sectors • GS-III: Indian Economy Issues Relating to Planning • GS-III: Economic Growth Development