e-Commerce policy on anvil

New Delhi An inter-ministerial consultation is going on to frame an e-Commerce policy, which would help in providing a conducive environment for inclusive and harmonious growth of the sector, a top government official said.

Secretary in the department for promotion of industry and internal trade (DPIIT) Rajesh Kumar Singh said that 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 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.

“We are in the process of inter-ministerial consultation (to frame the policy),” Singh told PTI. He said that the consumer protection rules and this policy will be separate, but they will not be in conflict with each other and in fact they will be entirely in agreement with each other. The policy would act as an overarching framework as compared to the e-commerce rules. When asked about the demand for domestic retailers for a clarification in the policy of foreign direct investment (FDI) in the e-commerce sector, the secretary said that the policy will try to address some of those issues of more effectively enforcing the norms.

On any consideration about a regulator for the sector, he said there is no immediate move on that. Traders’ body CAIT (Confederation of All Indian Traders) had asked for the roll-out of a robust e-commerce policy and the formation of an empowered regulatory body. CAIT has 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 is not allowed in the inventory-based model. The onus of compliance of the provisions is on the infested company and any violation of FDI regulations are covered by the penal precisions 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 e-commerce sector, and Competition Act.