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Government looking at liberalizing ecommerce policy

Ecommerce giants like Amazon, Flipkart to gain as policy will give a further boost to the sector

Policy Pulse
Publish Date: Aug 10 2016 11:12AM | Updated Date: Aug 10 2016 4:51PM

Government looking at liberalizing ecommerce policy

The government is thinking to liberalize the ecommerce policy which would give a boost to the sector. The new policy would suggest a possible make-over of the online marketplace rules that were issued in March. 


This move could provide a better boost for the ecommerce leaders Amazon, Flipkart and their rivals. A high-level committee has been set up under Niti Aayog to make the expected changes in the rules.  CEO Amitabh Kant to look into ecommerce, including issues related to foreign direct investment. 


"We want to liberalize the sector and do away with complex regulations," said an official source from the Niti Aayog. "We will look into each and every aspect of ecommerce and issues involved." 


The global ecommerce market is worth $22.1 trillion, according to estimates by the United Nations Conference on Trade and Development (UNCTAD). India is ranked 10 with 22 million online shoppers and ahead of Brazil, Russia in per-capita ecommerce spending. 


Total B2C (business-to-customer) sales in India stood at $20 billion and B2B (business-to-business) at $298 billion. The ecommerce industry in India is expected to grow from $17 billion in 2014 to $60-70 billion by 2019.


The 12-member committee will submit its recommendations to PMO in two months. The committee includes secretaries of the Department of Industrial Policy & Promotion, Department of Economic Affairs and Department of Electronics and Information Technology besides representatives of six states.