Draft e-commerce policy: Keeping our data safe and secure

The Department of Industry and Internal Trade on Saturday released the draft National ecommerce Policy that sends a clear message that India and its citizens have a sovereign right to their data. Final policy will be issued based on inputs. Kirtika Suneja explains the details,

KEY ISSUES ADDRESSED
Data
Infrastructure development

Ecommerce marketplaces
Regulatory issues
Stimulating domestic digital economy
Export promotion

INDIAN CONTROL OVER 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 FOR APPS & WEBSITES
All ecommerce websites, apps available for downloading in India to have a registered business entity here.

Non-compliant ecommerce app/website to be denied access here.

INCENTIVES FOR DATA LOCALISATION
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 ECOMM
FDI only in marketplace model.

No FDI in inventory model.

ECOMMERCE TRADE
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.

REGUALTION
No separate regulator for ecommerce sector.

E-consumer courts to be developed.