The proposed national e-commerce policy being formulated by the Commerce and Industry Ministry is in the final stages, and no new draft policy will be issued now to seek the views of stakeholders, a senior government official told PTI.
There will be no further release of draft policies to solicit stakeholder feedback, as a meeting held by the Department for Promotion of Industry and Internal Trade (DPIIT) on August 2 saw substantial agreement among e-commerce companies and domestic traders’ representatives on the policy’s outlines.
The official, speaking anonymously, stated that final approval is pending and the proposed policy will soon be presented to the government.
E-commerce policies
Addressing data localisation, the official emphasised adherence to the country’s laws. This development comes after the ministry previously issued two draft national e-commerce policies. The 2019 draft aimed to cover six broad facets of the e-commerce ecosystem, including data, infrastructure, marketplaces, regulations, stimulating the domestic digital economy, and bolstering e-commerce-driven exports.
The draft policy touched upon cross-border data flow restrictions, local collection and processing of sensitive data, curbing counterfeit products and illicit content, and revisiting customs duties on electronic transmissions.
Furthermore, the policy embraced strategies for boosting exports via e-commerce and fostering domestic data storage capabilities. With a focus on all stakeholders, such as investors, manufacturers, startups, and consumers, the policy intends to harmonise with forthcoming consumer protection regulations.
The objective remains to create an environment that nurtures the e-commerce sector’s inclusive and cohesive growth, encouraging modern technologies, streamlined supply chains, and increased exports.
Violations by foreign online retailers
The Confederation of All India Traders (CAIT), representing domestic traders, has consistently urged the policy’s release, citing alleged violations by foreign online retailers in contravention of Foreign Direct Investment (FDI) norms. The government’s stance permits FDI in the marketplace e-commerce model but not in the inventory-based model.
The accountability for FDI regulation adherence falls on invested companies, with FEMA’s punitive provisions applicable to violations.
While the regulatory framework for the digital and e-commerce domains continues to evolve, incorporating the Information Technology Act, Consumer Protection Act, FDI policies, and Competition Act, the DPIIT concurrently develops a national retail trade policy. Domestic traders advocate the establishment of a regulatory body to monitor and oversee the country’s e-commerce trade activities.
(With PTI inputs)
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