Mains Paper 3: Economy | Changes in industrial policy & their effects on industrial growth
From UPSC perspective, the following things are important:
Prelims level: Analysis of Draft e-commerce policy
Mains level: The newscard provides various prospects of the draft policy in short and lucid manner
- The DPIIT has released the draft National e-commerce Policy that sends a clear message that India and its citizens have a sovereign right to their data.
Key Issues addressed
- Infrastructure development
- E-commerce marketplaces
- Regulatory issues
- Stimulating domestic digital economy
- Export promotion
Indian control over own data
- Govt to be given access to source code, algorithms of AI systems Impose custom duties on electronic transmissions to reduce revenue loss.
- Bar sharing of sensitive data of Indian users with third party entities, even with consent.
- A ‘data authority to look at community data.
Local Presence of Apps and Websites
- All e-commerce websites, apps available for downloading in India to have a registered business entity here.
- Non-compliant e-commerce app/website to be denied access here.
Incentives for data localization
- Location of the computing facilities like data centres, server farms within India.
- Firms to get 3 years to comply with local data storage requirements.
- Data storage facilities to get ‘infrastructure status’.
FDI in E-Commerce
- FDI only in marketplace model (where multiple vendors come together under an IT based platform).
- No FDI in inventory model (where inventory of goods and services is owned by e-commerce entity and is sold to the consumers directly).
Certain E-Com Trade Rules
- Curbs on Chinese ecommerce exports.
- Gifting route, often used by Chinese apps, websites, banned for all parcels except life-saving drugs.
- Integrating Customs, RBI and India Post to improve tacking of imports through ecommerce.
- Incentives & e-commerce export promotions.
- Ecommerce startups may get ‘infant industry’ status raising limit for courier shipments from Rs 25,000 to boost ecommerce export.
Regulation for E-coms
- No separate regulator for ecommerce sector.
- E-consumer courts to be developed.