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Parliamentary panel calls for notification of e-commerce policy to address sector’s ‘strategy vacuum’

GS Paper 3

Syllabus: Economy – Liberalisation after 1991

 

Source: Business Line

 

Context: A Parliamentary panel report ‘Promotion and Regulation of E-Commerce in India’ suggested that a national e-commerce policy needs to be notified by the Government at the earliest as the absence of a dedicated policy had resulted in fragmented and ineffective regulation and created a strategy vacuum for the sector.

 

About e-Commerce:

  • Electronic commerce or e-commerce is a business model that lets firms and individuals buy and sell things over the Internet.

 

Need for the policy:

  • Ensure protection of consumer rights and privacy and include anti-counterfeiting, and anti-piracy measures.

 

Suggestions given:

  • Pro-customer framework
  • Skill development strategy – by gauging the various requirements in the e-commerce value chains.
  • Proposed framing of suitable social security schemes related to insurance, working conditions, disability and other benefits by the government.
  • Appropriate labour laws relating to working hours, and holidays. minimum pay, etc., for gig and platform workers, should be framed and e-commerce must be mandated to extend these benefits,
  • The committee further recommended that the DPIIT should develop appropriate mechanisms for the enforcement of rules related to Intellectual Property Rights in the e-commerce space in consultation with the relevant Ministries/Departments.
  • Need to notify e-pharmacy rules and formulate comprehensive guidelines with regard to e-pharmacy/e-health platforms.

Related News:

India should target $350 bn exports through e-commerce by 2030: GTRI

Source: Business Standard

 Context: The Global Trade Research Initiative (GTRI) in its report suggested that India should target USD 350 billion worth of goods exported through e-commerce by 2030

India’s current e-commerce export numbers remain far below their potential. Currently, e-commerce exports account for only USD 2 billion, less than 0.5 per cent of the country’s total goods export basket.

 

Suggestions:

  • Government should issue a separate e-commerce export policy. Such policies in countries including China, Korea, Japan, and Vietnam, have helped many firms sell globally.
  • Redefining responsibilities of sellers; simplifying payment reconciliation and processes; developing business ecosystem; and setting up a National Trade Network for the medium.

 

Insta links:

Sansad TV: Committee Report- Promotion & Regulation of E-Commerce

 

Mains Link: UPSC 2015

What are the impediments in marketing and supply chain management in developing the food processing industry in India? Can e-commerce help in overcoming these bottlenecks?

 

Prelims Link: UPSC 2022

With reference to foreign-owned e-commerce; firms, operating in India, which of the following statements is/are correct?

  1. They can sell their own goods in addition to offering their platforms as marketplaces.
  2. The degree to which they can own big sellers on their platforms is limited.

Which of the above statements is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

Answer: b