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  • 16th February 2019 | Prelims Daily with Previous Year Questions

    Q.1) Consider the following statements:

    1. The Central Information Commission (CIC) is set up under the Delhi Special Police Establishment Act.
    2. It is a quasi judicial body, established in 2005.
    3. CIC and members are appointed by the Prime Minister.

    Which of the given statements is/are correct?

    a) Only 1

    b) 1 and 2

    c) 2 and 3

    d) 1, 2 and 3

    Inspired by: Why only bureaucrats on information panels, asks SC

    https://www.civilsdaily.com/news/why-only-bureaucrats-on-information-panels-asks-sc/

    Q.2) The “Make Listening Safe” Initiative recently seen in news is organized by:

    a) WHO

    b) UNICEF

    c) Red Cross

    d) None of these

    Inspired by: WHO issues new international standard for music devices

    https://www.civilsdaily.com/news/who-issues-new-international-standard-for-music-devices/

    Q.3) The Spirit and Opportunity space missions of NASA recently seen in news are related to which of the following celestial bodies?

    a) Mars

    b) Saturn Ring

    c) Asteroid Bennu

    d) None of these

    Inspired by: NASA’s Opportunity Rover

    https://www.civilsdaily.com/news/nasas-opportunity-rover/

    Q.4) The Mysticellus Franki specie recently seen in news is a:

    a) Frog

    b) Snake

    c) Lizard

    d) Cricket

    Inspired by: The Hindu

    Q.5) Who of the following had first deciphered the edicts of Emperor Ashoka?

    a) Georg Bilhler

    b) James Prinsep

    c) Max Muller

    d) William Jones

    Inspired by: CSP 2016

     

    For Solutions – Click Here

    Prelims Daily Archive – Click here

  • 15th February 2019 | Prelims Daily with Previous Year Questions

    Q.1) Consider the following statements with respect to the Pradhan Mantri Shram Yogi Maan-Dhan (PM-SYM):

    1. It is a Central Sector Scheme administered by the Ministry of Labour and Employment.
    2. EPFO will be the Pension Fund Manager and responsible for Pension pay out.
    3. An eligible person for this scheme should not be an income tax payer.

    Which of the given statements is/are correct?

    a) Only 1

    b) 1 and 2

    c) 1 and 3

    d) 1, 2 and 3

    Inspired by: [pib] Pradhan Mantri Shram Yogi Maan-Dhan (PM- SYM)

    https://www.civilsdaily.com/news/pib-pradhan-mantri-shram-yogi-maan-dhan-pm-sym/

     

    Q.2) With reference to the incidence of Leprosy in India, consider the following statements:

    1. Various personal laws prohibit leprosy as a ground for dissolution of marriage or divorce.
    2. India is a signatory to a UN Resolution which calls for elimination of discrimination against persons suffering from leprosy.

    Which of the given statements is/are correct?

    a) Only 1

    b) Only 2

    c) Both 1 and 2

    d) Neither 1 nor 2

    Inspired by: Parliament passes law removing leprosy as ground for divorce

    https://www.civilsdaily.com/news/parliament-passes-law-removing-leprosy-as-ground-for-divorce/

     

    Q.3) Consider the following statements:

    1. Most Favoured Nation is a treatment accorded to a trade partner to ensure non-discriminatory trade between two countries vis-a-vis other trade partners.
    2. Article 1 of the General Agreement on Tariffs and Trade (GATT), 1994, requires every member country of the WTO to accord Most Favoured Nation (MFN) status to all other member countries.
    3. The WTO rules allow discrimination in certain cases like in cases when a country signs free trade agreements in a region.

    Which of the given statements is/are correct?

    a) Only 1

    b) 1 and 3

    c) 2 and 3

    d) All are correct

    Inspired by: Explained: What is MFN status, how can India hurt Pak by withdrawing it

    https://www.civilsdaily.com/news/explained-what-is-mfn-status-how-can-india-hurt-pak-by-withdrawing-it/

    Q.4) Consider the following statements:

    1. A Bill originated in Rajya Sabha and is passed by it, but remains pending in Lok Sabha lapses.
    2. A Bill originated in the Rajya Sabha and returned to that House by the Lok Sabha with amendments and still pending in the Rajya Sabha on the date of the dissolution of Lok Sabha lapses.

    Which of the given statements is/are not correct?

    a) Both 1 and 2

    b) Only 1

    c) Only 2

    d) Neither 1 nor 2

    Inspired by: Explained: Effect on Bills when Parliament adjourns sine die

    https://www.civilsdaily.com/news/explained-effect-on-bills-when-parliament-adjourns-sine-die/

    Q.5)  ‘Net metering’ is sometimes seen in the news in the context of promoting the:

    a) production and use of solar energy by the households/consumers

    b) use of piped natural gas in the kitchens of households

    c) installation of CNG kits in motor-cars

    d) installation of water meters in urban households

    Inspired by: CSP 2016

     

     

    For Solutions – Click Here

    Prelims Daily Archive – Click here

  • Importance of attempting quality tests – Evidence-based Questions approach will give you an edge in Prelims

    The philosophy of our Test Series has been to bring it closer to the actual exam in terms of both toughness and format. We try to ensure that the standard of questions is continuously raised.

    One of the ways we do it is using – Evidence-based question making

    The questions are not framed according to the whims and fancies of the question-makers. They have to provide objective evidence to the supervisory team about the relevance of the question and why it has a higher probability of being asked in the actual exam. They have to prove that a similar question has been asked previously in the Prelims exam.

    We are putting in conscious effort to ensure more questions are asked on themes that UPSC considers important. At the same time, we try to ignore those themes that UPSC has been ignoring. List of examples presented at the end.

    Examples of Evidence-based question making 

    Consider the following statements :

    1. The north-south extent of India is greater than its east-west extent.

    2. Area Wise, Rajasthan is the largest state and Sikkim the smallest.

    Select the correct statements using the code below :

    a) 1 only

    b) 2 only

    c) Both 1 and 2

    d) Neither 1 nor 2

    Similar question asked in UPSC 2016 Prelims

    Which of the following pairs of States of India indicates the easternmost and westernmost State?

    a) Assam and Rajasthan

    b) Arunachal Pradesh and Rajasthan

    c) Assam and Gujarat

    d) Arunachal Pradesh and Gujarat

    Which one of the following islands are separated from each other by the ‘Duncan Passage? 

    a) Little Andaman and Great Andamans

    b) Nicobar and Sumatra

    c) Maldives and Lakshadweep

    d) Sumatra and Java

    Similar question asked in UPSC 2014 Prelims

    Which one of the following pairs of islands are separated from each other by the ‘Ten Degree Channel’?

    a) Andaman and Nicobar

    b) Nicobar and Sumatra

    c) Maldives and Lakshadweep

    d) Sumatra and Java

    Which of the following are the features of Subsistence Farming:

    1. Most of the work is done manually.

    2. overall yield is high but productivity per labor is low.

    3. Traditional methods of farming are followed.

    Select the correct statements using the code given below:

    a) 1 and 2 only

    b) 1 and 3 only

    c) 2 and 3 only

    d) All of the above

    Similar question asked in UPSC 2012 Prelims

    Which of the following is the chief characteristic of ‘mixed farming’?

    (a) Cultivation of both cash crops and food crops

    (b) Cultivation of two or more crops in the same field

    (c) Rearing of animals and cultivation of crops together

    (d) None of the above

  • Interview Enrichment Program – Mock interviews

    Dear students,

    We are starting to release the mock interview videos. The playlist is being maintained here.

    It is well known that the interview is the third and final stage of the CSE. But, the importance of this stage is often underestimated. Despite being a fraction of the total marks in the exam, its weightage is tremendous when it comes to the final rank a candidate gets. Many times it is the interview that makes or breaks your dream of joining the elite clique of civil servants.

    It is vital to realise that cracking the interview is an ‘art’ as well as a ‘science’, both of which are intrinsically connected. In order to understand this enigma, Civils Daily studied the interview to the bone and the findings were shared with the student community through the free lectures of Sh. V.P. Singh (IRTS, 2009).

    We went one step further and conducted mock interviews based on the findings of our research. The mocks were taken by a distinguished panel of experts including Dr. Makhan Saikia (published author and faculty of Pol. Sc.), Sh. V.P. Singh (IRTS, 2009) and Mr. Rakesh Dalal (Core Faculty and Mentor, CD). The comprehensive assessment has been done on parameters like:

    1. Integrity
    2. Leadership
    3. Critical power of assimilation
    4. Openness to new ideas
    5. A clear and logical expression
    6. Balance of judgement
    7. Mental alertness
    8. Emotional stability
    9. Body language

    The mocks not just corroborated the strengths of the candidates, but, and more importantly; revealed hidden shortcomings which could have proved deadly in the actual interview.

    The following are the links of the mock interviews taken on 8th January 2019 for your reference:

    KUNAL AGGARWAL – MOCK INTERVIEW

    Personifying a ‘never-say-die attitude’, Kunal is a charismatic young man whose passion for civil services is equated by his calm composure and balanced replies in this ‘stress interview’. After his B.Tech (Computer Sc. and Engineering) from IIT, Hyderabad; Kunal had been working in a reputed MNC for 3 yrs until his decision to take on the UPSC. This mock interview will be most beneficial to those having PSIR optional and to those dejected with multiple attempts at CSE.

    ROHIT ANAND – MOCK INTERVIEW

    With a passion for teaching and serving the underprivileged, this electronics and communication engineer from NSIT, Delhi has balanced his job with social service. With PSIR as his optional subject and an intriguing social service profile, Rohit made a classic interview candidate. His replies further kindled the interview panel’s curiosity. Watch this session to find out what could be those obscure contradictions in your DAF that could cost you your dream job.

    VISHAL SINGH – MOCK INTERVIEW

    This energetic mechanical engineer from IIT Guwahati has a DAF that can fill anyone with awe. The diversity of his extracurriculars are equivalent to his academic feats. But, nothing attracts the inquisitiveness of the interview board more than a rich DAF. Watch this electrifying session for life-changing tips on interview prep.

    CD has done its part in making this ordeal of a stage more intelligible and less daunting. It is now your turn to roll the ball further with your valuable feedback and active cooperation.

    Let 2019 be the year you make history!!

    Cheers,
    Team CD

    Don’t miss out on the program – Click here to know more

     

  • 14th February 2019 | Prelims Daily with Previous Year Questions

    Q.1) Which of the following is not the feature of the proposed National Policy on Domestic Workers?

    a) Right to form their own associations/unions

    b) Domestic Workers to have access to courts, tribunals for grievance redressal

    c) Establishment of a mechanism for regulation of private placement agencies

    d) Right to guaranteed employment

    Inspired by: [pib] National Policy for Domestic Workers (draft)

    https://www.civilsdaily.com/news/pib-national-policy-for-domestic-workers-draft/

    Q.2) Consider the following statements with respect to the National Commission for Safai Karmacharis (NCSK):

    1. The constitution of India explicitly mentions for the provision of setting up NCSK.
    2. NCSK works for the welfare and upliftment of the Safai Karmacharis and persons engaged in manual scavenging in the country.

    Which of the given statements is/are correct?

    a) Only 1

    b) Only 2

    Both 1 and 2

    Neither 1 nor 2

    Inspired by: [pib] National Commission for Safai Karmacharis

    https://www.civilsdaily.com/news/pib-national-commission-for-safai-karmacharis/

    Q.3) The World Government Summit recently held in Dubai, UAE is an initiative of:

    a) OPEC

    b) Gulf Cooperation Council

    c) World Economic Forum

    d) None of the above

    Inspired by: World Government Summit

    https://www.civilsdaily.com/news/world-government-summit/

    Q.4) As per the Recognition of Forest Rights Act, 2006 which of the following entity is considered as Minor Forest Produce?

    1. Honey
    2. Lac
    3. Tendu Leaves
    4. Bamboo
    5. Wood Oil

    Select the correct alternative:

    a) 1, 2, 3 and 4

    b) 1, 3, 4 and 5

    c) 1, 2 and 3

    d) 1, 2, 3, 4 and 5

    Inspired by: Centre to revamp minimum support for minor forest produce

    https://www.civilsdaily.com/news/centre-to-revamp-minimum-support-for-minor-forest-produce/

    Q.5) The Ghumot, an indigenous earthen drum is notified as a heritage instrument of which of the following state?

    a) Karnataka

    b) Gujarat

    c) Goa

    d) Rajasthan

    Inspired by:  The Hindu

     

     

    For Solutions – Click Here

    Prelims Daily Archive – Click here

  • 13th February 2019 | Prelims Daily with Previous Year Questions

    Q.1) Consider the following statements:

    1. A circular economy is an economic system aimed at minimising waste and making the most of resources.
    2. In a circular system resource input and waste, emission, and energy leakage are minimized by slowing, closing, and narrowing energy and material loops.

    Which of the given statements is/are correct?

    a) Only 1

    b) Only 2

    c) Both 1 and 2

    d) Neither 1 nor 2

    Inspired by: [pib] National Productivity Week

    https://www.civilsdaily.com/news/pib-national-productivity-week/

    Q.2) The KISAN Project recently seen in news is related to:

    a) Waiving off loan processing charges

    b) Crop Insurance using space technology

    c) Subsidizing of Farm Equipment

    d) None of the above

    Inspired by: [pib] Use of Space Technology in Agriculture Sector

    https://www.civilsdaily.com/news/pib-use-of-space-technology-in-agriculture-sector/

    Q.3) Which of the following countries does not share border with the North Macedonia?

    a) Albania

    b) Greece

    c) Serbia

    d) Ukraine

    Inspired by: Macedonia to become NATO’s 30th member

    https://www.civilsdaily.com/news/macedonia-to-become-natos-30th-member/

    Q.4) The Cartagena Protocol and Nagoya Protocol are the two supplementary agreements under the:

    a) Convention on Biological Diversity (CBD)

    b) CMS Bonn Convention

    c) CITES

    d) None of the above

    Inspired by: [op-ed snap] A case for Commons sense

    https://www.civilsdaily.com/news/op-ed-snap-a-case-for-commons-sense/

    Q.5) The newly found Crying Keelback species seen in news is a:

    a) Gecko

    b) Frog

    c) Snake

    d) Goose

    Inspired by: Times of India

     

    For Solutions – Click Here

    Prelims Daily Archive – Click here

  • 12th February 2019 | Prelims Daily with Previous Year Questions

    Q.1) The Nirbhaya Fund is administered under the:

    a) Ministry of Social Justice and Empowerment

    b) Ministry of WCD

    c) Ministry of Finance

    d) Ministry of Home Affairs

    Inspired by: Diversion of Nirbhaya Fund

    https://www.civilsdaily.com/news/diversion-of-nirbhaya-fund/

    Q.2) The Indian Council of Historical Research, which conducts research on multifarious topics of historical importance, is a premier institution under the:

    a) Indian History and Culture Society

    b) Archaeological Survey of India

    c) Ministry of Culture

    d) Ministry of HRD

    Inspired by: [pib] Reconstitution of Indian Council of Historical Research (ICHR)

    https://www.civilsdaily.com/news/pib-reconstitution-of-indian-council-of-historical-research-ichr/

    Q.3) Which of the given statements about the Cultural Heritage Youth Leadership Programme is/are correct?

    1. It is an initiative of Ministry of Home Affairs.
    2. It aims to enrich awareness of Indian culture and heritage amongst the youth in order to promote, understand and develop fondness for India’s rich cultural heritage.
    3. The programme is implemented by Centre for Cultural Resources and Training (CCRT).

    Select the correct code:

    a) Only 1

    b) 1 and 2

    c) 2 and 3

    d) All are correct

    Inspired by: [pib] Cultural Heritage Youth Leadership Programme (CHYLP)

    https://www.civilsdaily.com/news/pib-cultural-heritage-youth-leadership-programme-chylp/

    Q.4) The SDG India Index is an released by:

    a) UNDP

    b) NITI Aayog

    c) Tata Institute of Fundamental Research

    d) CSO

    Inspired by: [op-ed snap] The state of the States

    https://www.civilsdaily.com/news/op-ed-snap-the-state-of-the-states/

    Q.5) The Sarthi Sandesh Vahini Initiative recently seen in news is related to:

    a) TB control

    b) Family Planning

    c) Filariasis

    d) None of the above

    Inspired by: Business Standard

     

    For Solutions – Click Here

    Prelims Daily Archive – Click here

  • Samachar Manthan – the course to help you get a grip on Current Affairs

    Samachar Manthan needs no introduction. It has become a standard and everyone is trying to bring out a copy-pasted version of the same.

    Here’s a snippet of what you get – 

    1. Video Lectures every week.
    2. Detailed Notes – from a variety of sources. Not just confined to The Hindu.
    3. A clear demarcation between Prelims specific and Mains specific news
    4. Current Affairs based Prelims Tests.
    5. Current Affairs based weekly Mains Tests.
    6. Evaluation by experts to iron out weaknesses in test taking
    7. Mentorship and Personalised Attention
    8. Full access to CD Monthly Magazines – including editorial analysis, PIB, etc.

     

    Samachar Manthan Current Affairs Module 2018-19 (December 2018 to May 2019)- Starts 2nd December

    Join Samachar Manthan 2018-19 (December 2018 to May 2019) [without Answer Writing Module] here: Click2Join

    Join Samachar Manthan 2018-19 (December 2018 to May 2019) [with Answer Writing Module] here: Click2Join

    [Batch 2] Samachar Manthan Yearly 2018-19 (Full Year Coverage of Current Affairs)

    Join Batch 2 of the SM Yearly program [with Answer Writing Module] here: Click2Join

    If you wish to join the program without answer writing feature, you can do that here: Click2Join

    Click here to check out all our programs and understand how we are making them better. 

  • 11th February 2019 | Prelims Daily with Previous Year Questions

    Q.1) The Sela Pass recently seen in news is located in the state of:

    a) Himachal Pradesh

    b) Sikkim

    c) Arunachal Pradesh

    d) Uttarakhand

    Inspired by: Sela Pass Tunnel Project

    https://www.civilsdaily.com/news/sela-pass-tunnel-project/

    Q.2) Consider the following statements:

    1. 13th Conference of Parties (COP) of the UN Convention on the Conservation of Migratory Species (CMS) is to be held in India in 2020.
    2. The Olive Ridley Turtle will be its mascot.

    Which of the given statements is/are correct?

    a) Both 1 and 2

    b) Only 1

    c) Only 2

    d) Neither 1 nor 2

    Inspired by: Centre announces mascot for COP-13 on conservation of migratory species

    https://www.civilsdaily.com/news/centre-announces-mascot-for-cop-13-on-conservation-of-migratory-species/

    Q.3) Which of the given statements is/are correct?

    1. All implantable medical devices, CT scan, MRI equipment, defibrillators, dialysis machine, PET equipment, X-ray machine and bone marrow cell separator are notified as drugs.
    2. The National Pharmaceutical Pricing Authority is the national medical device regulator for its sale and use in India.

    Select the correct code:

    a) Only 1

    b) Only 2

    c) Both 1 and 2

    d) Neither 1 nor 2

    Inspired by: All Medical equipment notified as drugs

    https://www.civilsdaily.com/news/all-medical-equipment-notified-as-drugs/

    Q.4) Consider the following statements with respect to the Asiatic Lion Conservation Project:

    1. It is a Centrally Sponsored Scheme under Development of Wildlife Habitat (CSS-DWH).
    2. The expenditure is shared in ratio 60:40 by the Centre and the State.

    Which of the given statements is/are correct?

    a) Only 1

    b) Only 2

    c) Both 1 and 2

    d) Neither 1 nor 2

    Inspired by: Asiatic Lion Conservation Project

    https://www.civilsdaily.com/news/asiatic-lion-conservation-project/

     

    Q.5) The Arundhati Scheme to provide gold at free of cost to the brides is an initiative of:

    a) West Bengal

    b) Manipur

    c) Assam

    d) Arunachal Pradesh

    Inspired by: Business Standard

     

    For Solutions – Click Here

    Prelims Daily Archive – Click here

  • New E-Commerce Policy

    Context

    • The Commerce Ministry to carry out a fresh round of consultations with stakeholders to address concerns raised by many on the proposed e-commerce policy.

    Background

    What is e-commerce?

    • Electronic commerce or ecommerce is a term for any type of business, or commercial transaction that involves the transfer of information across the Internet.

    Types of e-commerce business model

    1. Online Subscriptions: Here the users can choose from subscriptions available on the website and subscribe according to their needs. For Example magazines like Frontline can be subscribed online
    2. Exclusive Brand Stores: Here the brands create their own online brand stores. Consumers get the advantage of shopping from their trusted brands online without having to visit the physical stores.
    3. Deals Websites: Herewebsites give the consumers various deals available on other websites or stores. For example coupondunia.in etc.
    4. Marketplace: This model of e-commerce means providing a platform by an e-commerce entity to act as a facilitator between buyer and seller.

    Here Inventory, stock management, logistics etc are not supposed to be actively done by the ecommerce firm. Based on this there are various websites with different models that they follow. Such as

    • Business-to-Business (B2B);
    • Businessto- Consumer (B2C);
    • Business-to-Government (B2G);
    • Consumer-to-Consumer (C2C);
    1. Inventory Model: Inventory model of e-commerce means an e-commerce activity where inventory of goods and services is owned by e-commerce entity and is sold to the consumers directly. Alibaba of China is following the inventory model.

    Reason for the growth of E-commerce in India

    1. Falling communication cost, large population subscribed to internet broadband, 3G and 4G.
    2. Rise in Smartphone Users
    3. Availability of multiple payment options like cash-on-delivery (COD), EMI and free shipping.
    4. Multiple Product Options with Cheap Prices
    5. Changing consumer behavior: Less time to spend in traveling to places and shopping
    6. Foreign Investors are funding ecommerce sector due to strong growth prospects.

    https://blog.forumias.com/wp-content/uploads/2018/10/milion-jobs.jpg

    Policy guidelines for e-commerce (2016)

    • 100% FDI under automatic route is permitted in marketplace model of e-commerce
    • FDI is not permitted in Inventory based model of e-commerce
    • A single brand retail trading entity operating through brick and mortar stores is permitted to undertake retail trading through e-commerce.
    • No platform should have more than 25% of its sales coming from a single seller.

    Need for new e-commerce policy

    1. Defining e-commerce: There is no commonly accepted definition of digital economy or e-commerce. Further, there is inadequate data on the trade of digital products. Both these shortcomings hinder effective policy making in the country
    2. Rapid growth of e commerce: The e-commerce market is expected to reach US$ 64 billion by 2020 and US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. Thus there is a need for clearly laid-down rules for electronic commerce in the country.
    3. Presence of multiple regulators: E- commerce is currently regulated by multiplicity of government departments such as IT Department, industrial policy, revenue, and RBI. Hence, a national e-commerce policy would consolidate the various norms and regulations to cover all online retailers.
    4. To protect the interest of consumer: With the increasing online frauds, there is a need to strengthen the regulatory regime for protecting the consumer in the context of e-commerce
    5. To scrutinize Merger and Acquisition:Unregulated Mergers and Acquisitions may “distort competition’.
    6. To facilitate cross-border e-commerce: At multilateral forum such as the World Trade Organization (WTO), the government was facing pressure to negotiate rules facilitating cross-border e-commerce.A national e-commerce policy will also enable better negotiations on multilateral issues with the World Trade Organization.
    7. To boost MSME: The e-commerce industry been directly impacting the micro, small & medium enterprises (MSME) in India by providing means of financing, technology and training and has a favourable cascading effect on other industries as well.

     https://blog.forumias.com/wp-content/uploads/2018/10/Getting-house-in-order.jpg

    Draft e-commerce policy

    • Draft National Electronic Commerce Policy will steer the approach of the government towards e-retailers, digital service providers and anyone else who conducts e-commerce in India.
    • The draft recommendations were prepared by several stakeholders, including by the private sector and government officials from departments such as commerce, industry, IT and electronics.

    https://blog.forumias.com/wp-content/uploads/2018/10/check-and-blance.jpg

    1. Common definition: A common definition of electronic commerce for the purposes of domestic policy-making and international negotiations would be adopted.
    2. Single legislation: It proposes a single legislation to address all aspects of digital economy and a single regulator for issues related to FDI implementation and consumer protection. It says legal fragmentation seen across various laws governing the ecommerce sector should be corrected.
    3. Data localization: It mandates localization of data in India, consistent with the Srikrishna Committee’s draft data protection bill. The draft also talks about the government having access to data stored in India for national security and public policy objectives.
    4. Disclosures of Data: E-commerce entities would be required to disclose their data collection practices to consumers and share terms & conditions in a simplified format.
    5. On FDI: The draft policy proposes 49% FDI under the inventory model for Indian-owned and Indian-controlled firms to sell locally-produced goods on their online platforms.
    6. Registration of All Ecommerce Portals: All active e-commerce portals in India will have to register with e-Central Consumer Protection Authority (CCPA). CCPA shall act as a nodal agency for intra-government coordination, checking frauds within the industry, formulating regulations and more.
    7. Regulations on Discounts: On the matter of discounts, the draft policy suggests a ‘sunset period’ for every discount and offer, beyond which no e-commerce portal can be allowed to provide discounts. Bulk purchase of branded goods such as electronic products, white goods, branded fashion by related party sellers, which lead to price distortions in a market place would be prohibited
    8. Centralize registration: It recommends Centralized registration instead of local registration of e commerce companies.
    9. Taxation of foreign-owned companies: Use principle of ‘significant economic presence’ as the basis for determining ‘Permanent Establishment’ for tax assessment. This would mean that the geography of an e-commerce platform would be less important than the scale of economic activity it has in India.
    10. For MSME: The policy suggests a public-private retail platform only for micro, small and medium enterprises (MSMEs). It allows MSME to follow inventory based models for selling locally produced   goods   through   an   online platform.
    11. More Power to The Founders:It seeks to give more control and more power to the founders of the e-commerce business, rather than the investors. As per some analysts, this has been done because most of the biggest e-commerce portals in India are funded by foreign investors.
    12. Separate wing in Enforcement Directorate: The draft suggests a separate wing be set up in the Enforcement Directorate to handle grievances related to foreign investment in ecommerce.
    13. Merger and Acquisitions:More scrutiny of mergers and acquisitions that may ‘distort competition’. Competition Commission of India will examine entry barriers and anti-competitive practices. It assumes significance in the light of the recent acquisition of Flipkart by US retail major Wal-Mart.

    Impact on online retail

    • Phasing out of deep discounts will choke the demand and hurt the sales
    • There will be a loss of investment from the foreign investors
    • Localization of data will add to the cost of already cash-hungry online retailers due to intense competition.

    Impact on offline retail

    • It will provide a level playing field for the local retailers.
    • India’s first clause will give a boost to the sales of the offline retailers.
    • Restrictions on the bulk of wholesale procurements will reduce the price distortion in the marketplace which will be beneficial to the offline retailers.

    Challenges

    • Due to mandatory supervision of Competition Commission of India on Merger and Acquisition and regulation on discounts have led to apprehensions of return of license raj.
    • Data localization norms in draft policy hasn’t been taken kindly by international firms as that would increase the cost and also raiseIPR concerns.
    • Curb on discounting in online retail may lead to loss of costumer for many established and new firms
    • Many State governments have shown their reservation towards Centralized registration of e-commerce as subject of commerce falls under State list.
    • The FDI provision restricted to Indian firms may Influence the much the needed FDI in general and e commerce industry in particular.

    Way ahead

    • The government needs to strike a balance so that the global investor community is not deterred
    • The government must consult all stakeholders and critically analyse all the issues before finalizing the e commerce policy
    • The government should bring a legislation to regularize e commerce sector on priority basis
    • The policy should also regularize various other model of e-commerce like subscription websites, deals websites etc.
    • The policy must be able to channelize fast changing digital market

     

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