PNN
New Delhi [India], January 31: Since 2018, discussions around India's e-commerce policy have gained momentum. Despite the growing urgency, progress has been slow, with delays hindering the formalization of this critical framework. In 2019, the Ministry of Commerce and Industry released a draft national e-commerce policy after extensive consultations with industry stakeholders. However, given the paradigm shifts in the sector, the absence of a formal policy has created challenges.
"The lack of a comprehensive e-commerce policy has been a significant roadblock for the industry. Businesses need clarity and a level playing field to innovate and scale operations. A well-structured policy could unlock the true potential of this sector," said Subhash Chandra, Managing Director, Sangeetha- India's leading specialty (Smart Gadgets and Phones) retailer company.
In August 2024, Union Commerce and Industry Minister Piyush Goyal assured the industry that the policy would be announced soon. He highlighted key areas of focus, such as ensuring transparency in algorithms used on online platforms to prevent undue influence on consumer decisions. The Minister also emphasized the need for authenticity in online reviews and ratings, eliminating misleading advertisements, and fostering trust and integrity within the digital marketplace.
More and more big players are entering the Quick-Commerce arena to capitalize on the immense potential India offers. Sangeetha has innovatively combined physical stores with quick commerce to deliver electronic smart gadgets such as mobile phones, laptops, and other devices in record time. This model, however, requires further development to include non-banking financial companies (NBFCs), enabling easier purchasing options for high-value items like electronics. Integrating NBFCs into this ecosystem would provide value-added services that could drive growth across the retail sector as a whole.
"The upcoming budget session offers an opportunity to address the long-pending issues. Reports indicate that the government is in the final stages of drafting the e-commerce policy, with expectations that it may be introduced during this session. Parliamentary discussions are expected to refine the framework further, creating a robust policy that benefits all stakeholders," said Mr Chandra.
"The upcoming policy must prioritize trust, transparency, and innovation. It should strike a balance between supporting small businesses and empowering large platforms to thrive. Such an approach will create a win-win scenario for all stakeholders," added the Managing Director of Sangeetha.
The government's role in fostering a conducive environment for this growth is critical. An effective e-commerce policy introduced during the budget session could resolve the longstanding challenges faced by the industry. By emphasizing transparency, authenticity, and fair practices, the policy could build trust among consumers and businesses alike.
"The industry's expectations from the upcoming budget remain high. Stakeholders hope for a policy framework that fosters innovation, attracts investment, empowers small and medium enterprises, and holds major players accountable for ethical practices. This is the moment for India to lead the way in e-commerce and quick commerce. A forward-thinking policy framework will not only boost the retail sector but also make a significant contribution to the nation's economic growth," concluded Chandra.
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