Traders' body CAIT writes to commerce minister Suresh Prabhu over plans to change draft e-commerce policy

The Confederation of All India Traders (CAIT) said that the country's e-commerce market has considerably grown in size and scale which needs a codified policy and a regulatory authority to regulate and monitor the market.

Press Trust of India September 19, 2018 16:59:44 IST
Traders' body CAIT writes to commerce minister Suresh Prabhu over plans to change draft e-commerce policy

Mumbai: Traders' body CAIT on Wednesday termed the government's reported move to drop the draft of e-commerce policy as a regressive step, and has written to commerce minister Suresh Prabhu registering its protest.

The Confederation of All India Traders (CAIT) said that the country's e-commerce market has considerably grown in size and scale which needs a codified policy and a regulatory authority to regulate and monitor the market.

Traders body CAIT writes to commerce minister Suresh Prabhu over plans to change draft ecommerce policy

Representational Image. Thinkstock.

The objection has been raised after reports that the government has decided to drop the draft of e-commerce policy that proposed allowing 49 percent FDI in inventory model, and set up a committee of secretaries to decide on a new set of recommendations.

The traders' body said that the policy is already delayed for more than three years and if dropped, it will be a blow to the fair trade practices in e-commerce and will give every opportunity to e-commerce portals to continue with predatory pricing, deep discounting and loss funding, creating an uneven level playing field.

"If the policy is shelved, it will imply that the government is succumbing to the pressure of MNCs and online companies who want the e-commerce market to remain a freeplay ground," it said in the letter.

As per a report by marketing research firm eMarketer, the e-commerce sales will rise about 31 percent to $32.7 billion in 2018 and the e-commerce market in India is expected to grow to $200 billion by 2026, largely due to increasing Internet and smartphone penetration.

In absence of any policy to regulate such a vast landscape with potential, players will be free to set their own rules and play the game according to their vested profitability, it said.

Updated Date:

also read

Helter Shelter: What are cows doing inside government office premises in Gujarat?
India

Helter Shelter: What are cows doing inside government office premises in Gujarat?

Cows let loose in Gujarat were seen roaming the roads and entering government offices. This is how trustees of cattle shelter homes decided to protest against the Gujarat government for not releasing the promised Rs 500 crore financial assistance

Bilkis Bano case: Activist Sandeep Pandey, three others detained in Gujarat ahead of foot march
India

Bilkis Bano case: Activist Sandeep Pandey, three others detained in Gujarat ahead of foot march

Pandey and other activists were scheduled to participate in the foot march, titled 'Apologising to Bilkis Bano', planned to be taken out from her native village Randhikpur in neighbouring Dahod district on Monday under the banner of 'Hindu-Muslim Ekta Samiti'

IBBI raises regulatory fees to decrease dependency on government funding 
Business

IBBI raises regulatory fees to decrease dependency on government funding 

The IBBI, which was only established in late 2016, is the most recent financial market regulator.