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Draft e-commerce policy

Topics Covered:

  1. Government policies and interventions for development in various sectors and issues arising out of their design and implementation.


Draft e-commerce policy


What to study?

For Prelims and Mains: Key features and significance of the policy, challenges faced by the e- commerce industry in the country and measures needed to support their growth.


Context: The Department of Industry and Internal Trade has released the draft National ecommerce Policy that sends a clear message that India and its citizens have a sovereign right to their data.



  1. Data
  2. Infrastructure development.
  3. Ecommerce marketplaces.
  4. Regulatory issues.
  5. Stimulating domestic digital economy.
  6. Export promotion.


Key features of the draft:

  1. INDIAN CONTROL OVER DATA: Govt to be given access to source code, algorithms of AI systems Impose custom duties on electronic transmissions to reduce revenue loss. It bars sharing of sensitive data of Indian users with third party entities, even with consent.
  2. A ‘data authority‘ to look at community data.
  3. LOCAL PRESENCE FOR APPS & WEBSITES: All ecommerce websites, apps available for downloading in India to have a registered business entity here. Non-compliant ecommerce app/website to be denied access here.
  4. INCENTIVES FOR DATA LOCALISATION: Location of the computing facilities like data centres, server farms within India. Firms to get 3 years to comply with local data storage requirements.
  5. Data storage facilities to get ‘infrastructure status’.
  6. FDI IN ECOMM: FDI only in marketplace model. No FDI in inventory model.
  7. ECOMMERCE TRADE: Curbs on Chinese ecommerce exports. Gifting route, often used by Chinese apps, websites, banned for all parcels except life-saving drugs. Integrating Customs, RBI and India Post to improve tacking of imports through ecommerce.
  8. Incentives & e-commerce export promotions.
  9. Ecommerce startups may get ‘infant industry’ status raising limit for courier shipments from Rs 25,000 to boost ecommerce export.
  10. REGUALTION: No separate regulator for ecommerce sector.
  11. E-consumer courts to be developed.