Online trade policy in making.

Indian online trade policy: 

The digital space in India is a competitive market.  It is will soon reach a mark of 200 billion dollars by 2026!

Online shopping Online shopping

The Indian government recently consulted leading e-commerce companies for striving towards a healthier competition in the e-commerce space.

With the e-commerce boom and affordable pricing for the internet-enabled devices, the market has become volatile.

In a high profile meeting with officials of top sites like Flipkart, Wipro; the topic discussed at length. This meeting includes representatives of NASSCOM, FICCI and CII.

The use of artificial intelligence software for predicting consumer behaviour is a big cause of concern for the government. 

Online matters that need immediate attention:
The government is planning on an umbrella policy for the sector.  The aim is to be proactive on matters like:

  • Consumer Data protection.
  • Cyber safety.
  • Enforcement of existing norms.
  • Local payment counters.
  • Regulation of consumer reports.
  • Safe online shopping experience.


The issue looks complicated due to the presence of multiple stakeholders like:

  • Government
  • E-commerce sites
  • Allied business service providers
  • Business to Business Customers
  • Consumers
  • Suppliers
  • Third party payment sites
  • Taxation regulations
  • General population

Revamp of existing online laws:


As a part of this initiative, the process of revamping existing laws is on the table. This law brings changes to the existing consumer protection act to include the e-commerce industry.

 The retailers will be liable for defective products and fraudulent deals. Also on cards is the policy to get information about the seller details and agreements.  As a result, the new terminology of “online service providers” is being cited for better consumer protection. This will help overcome the multiple terminologies used to describe the marketplace.

The core idea:

These bylaws are a part of the government initiative to promote:

  • Safe online transactions
  • Small service providers
  • Customer choices
  • Jobs for the youth
  • Transparent services and added charges
  • Regulation of refunds
Online sellers viewpoint:

E-commerce websites believe that these laws will lead to stringent compliance Norms. It is also expected that the small service providers may be the worst sufferers of the policy change.
These e-commerce companies are expected to submit self-disclosure form. 

The Organizations are to disclose the consumer Data and its utilisation. Data harvesting and advertising disclosures by these stores will make consumer safe online. 

With addition of a consent form, variety of consumer issues are resolved. This means as a retailer, a simple form solves varied issues. 


The shopping stores are frequently accused of shipping fake products. This amended law will raise consumer confidence in e-commerce space. In a way, this can prove to be a win-win situation for both the sellers and the buyers.

The cause behind all these moves is the increasing complaints against online shopping stores. The lucrative discounts for the products are causing the customers to shift online for their needs. Income parity is another cause of the trend.

Share your views regarding the government initiatives to promote safe shopping experience. Do you believe that these strategies will impact the online shopping stores positively? Comment below.


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An ardent bibliophile with a keen eye for details, yours truly is a writer, naturalist, and artist. The interests range from technology to fashion. The theme of FART aptly describes the passion for the process of a self-actualization. Presently trying to align with the poetic geniuses and their legacy. (If ever be able to decipher their meaning).

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