Broad level of consensus among stakeholders on proposed ecommerce policy

A broad level of consensus has emerged among the concerned stakeholders on the proposed national e-commerce policy, which is under formulation, a senior government official said on Thursday. 

The commerce and industry ministry on August 2 held a detailed discussion with representatives of e-commerce firms and domestic traders body CAIT on issues related to the sector including the policy for the segment.

"There is a broad level of consensus. We will tell you more, may be in a couple of weeks. Policy is in final stages. There is a level of consensus across all stakeholders," the official said.

Both the policy and the rules will be aligned to each other, the official added.

Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal, who attended the meeting, has said it was indicated that the national e-commerce policy would be released by the government in the coming months.

"A unanimity was arrived at between all stakeholders about basic pillars of e-commerce policy and rules," Khandelwal said on Wednesday.

Senior officials from the Department for Promotion of Industry and Internal Trade (DPIIT) and the consumer affairs ministry were also present at the meeting.

The meeting assumes significance as the government is in the process of framing a national e-commerce policy and consumer protection rules for the sector.

Broadly the intention is to make the policy work along with the consumer protection rules and not in conflict with each other.

The 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.

Further, the policy would act as an overarching framework as compared to the e-commerce rules.

CAIT has time and again 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.

The onus of compliance with the provisions is on the infested company and any violation of FDI regulations is covered by the penal provisions of the FEMA (Foreign Exchange Management Act).

While the RBI administers the Act, the Enforcement Directorate is the authority for the implementation of FEMA and takes up investigations in cases of contravention of the law.

Further, the regulatory framework for the digital/e-commerce sector is still evolving in the country. The sector is governed by the Information Technology Act, Consumer Protection Act, FDI policy on the e-commerce sector, and Competition Act.

The DPIIT is also working on a national retail trade policy.