National e-commerce policy in final stages, no new draft to be issued: Official

The proposed national e-commerce policy is in the final stages and no new draft policy will be issued now for seeking the views of stakeholders, a senior government official said. The new e-commerce policy is being formulated by the commerce ministry. On 2 August, the Department for Promotion of Industry and Internal Trade (DPIIT) held a detailed discussion with representatives of e-commerce firms and a domestic traders’ body on the proposed policy. The official said that a consensus has emerged among the concerned stakeholders on the proposed policy.

“Now no draft policy will come. That exercise is over now. We are just getting a final sign-off,” the official told PTI news agency.

On data localisation, the official said that the e-commerce companies would have to follow the law of the land.

‘NATIONAL E-COMMERCE POLICY’

Earlier the Centre had issued two draft national e-commerce policies.

The 2019 draft proposed to address six broad areas of the e-commerce ecosystem – data, infrastructure development, e-commerce marketplaces, regulatory issues, stimulating the domestic digital economy, and export promotion through e-commerce.

The draft had talked about a framework for restrictions on cross-border data flow; collection or processing of sensitive data locally and storing it abroad; measures to contain the sale of counterfeit products, prohibited items, and pirated content; and review of the current practice of not imposing custom duties on electronic transmissions in the light of the changing digital economy.

Besides, it had suggested provisions for promoting exports through e-commerce; and developing capacity for data storage in India.

The proposed policy would take into account the interests of all stakeholders, like investors, manufacturers, MSMEs, traders, retailers, startups, and consumers.

The government is also in the process of framing consumer protection rules for the sector.

The e-commerce policy aims to prepare strategies for providing a conducive environment for inclusive and harmonious growth of the e-commerce sector through a streamlined regulatory framework for ease of doing business, adoption of modern technologies, integration of supply chains, and enhancing exports through this medium.

Domestic traders body CAIT has time and again demanded to roll out of the policy as they had alleged that foreign online retailers violate norms of the FDI (Foreign Direct Investment) in commerce and the government should take action against those who are indulging in malpractices.

The government permits FDI in the marketplace model of e-commerce and it is not allowed in the inventory-based model.