The latest draft e-commerce policy, released in an inter-ministerial meeting on Saturday, includes all modes of e-commerce including inventory, marketplace as well as hybrid models.
The nine-page policy document also called out that the governance will include entities, natural or legal with foreign and domestic investments.
“An e-commerce operator shall mean any entity that is engaged in the operational activities of selling goods or providing service through internet and other information network, including e-commerce platform operators, operators on platform and e-commerce operators selling goods or providing service via their self-built website or other web service,” said the draft e-commerce policy document, as released by the Department for Promotion of Industry and Internal Trade (DPIIT).
The individuals aware of the discussions told Mint that this is the definite version of the policy from the government’s end, post which it will be listed by the ministry of commerce and DPIIT for public consultations, expected to go on for a month. Post the consultations, the final policy document will be expected to be rolled out.
In a bid to increase the net of digital commerce in the country, DPIIT through the policy also outlined that the government will ‘aid computerization, digital payment-enablement and on-boarding of those sellers that currently do not have such facilities’. It will also look at bringing state emporiums under the gamut of digital commerce.
For giving a boost to exports, the government has spoken on the need of creating a low cost, and traceable solution targeted at e-commerce exporters by India Post, as well as strengthening the number of foreign post offices.
The government shall also undertake digital integration of multiple interfaces such as Central Board of Indirect Taxes & Customs (CBIC), Department of Posts (DoP), Directorate General of Foreign Trade (DGFT) and Goods and Service Tax Network (GSTN) for e-commerce exports.
Mint had earlier reported that these were also some of the strong recommendations made by the e-commerce industry for the upcoming Foreign Trade Policy 2021.
To ensure that customers have a free and informed choice, the draft policy also outlines e-commerce operators to ensure that the algorithms used are not biased and that no discrimination due to digitally induced biases is prevalent.
“In the interest of the Indian consumer, and the local startup ecosystem, the government will aim to ensure that there are more service providers available, and that network effects do not lead to creation of digital monopolies misusing their dominant market position,” stated the draft policy document.
The government through the document also reinforced that it understands that there is a tendency for one or two strong companies to emerge as leaders and exercise control over the repository of data collected.
“…entities that has access to maximum information about the market, is in a position to dominate it. This leads to subversion of competition,” said DPIIT.
Hence, to prevent this the government will lay down principles for usage of data for the purpose of development of any industry, e-commerce, consumer protection, national security, economic security and law enforcement including taxation where such principles do not already exist.
Further, the draft e-commerce policy also hints at localization of data of Indian consumers.
“Government may require adequate safeguards to be put in place to prevent misuse of data and access of data by unauthorized persons. Such safeguards may include regulating cross-border flow of data pertaining to Indians and transactions taking place in India and requirement of adequacy audits to be carried out by Indian firms. Violation of safeguards shall be viewed seriously and attract heavy penalties,” said the latest version of the draft e-commerce policy.
Source: mint
