Industry objects to clauses in draft ecommerce policy

Industry and individual companies have raised concerns over clauses related to data localisation, contradictions in Press Note 3, deep discounts, preference to RuPay and digital products in the draft ecommerce policy. “Ministries have not opposed the draft ecommerce policy, but companies, especially foreign ones, have concerns,” said an official in the know of details.

Data Security Council of India, according to the official, has opposed a clause that seeks to retain policy space for granting preferential treatment to digital products created within India in the context of international trade negotiations.

Amazon and Walmart are opposed to the draft ecommerce policy as they feel the policy is heavily tilted against foreign firms while domestic companies including Reliance Industries have said the proposal to allow 49% foreign investment in online marketplaces that hold inventory and sell directly to consumers contradicts the government’s stated intent to strengthen Press Note 3, which bars any foreign direct investment (FDI) in inventory-based online retail.


“While no department has said anything specific, some feel the draft policy goes beyond the narrow mandate of ecommerce and cuts across different areas,” said a second official.

In a meeting of the think tank on ecommerce last Monday, the consumer affairs department had redflagged the creation of a central consumer protection authority to resolve consumer complaints, but the commerce department said complaints made for online platforms should be dealt with digitally.

However, officials said no written objections from other ministries have been received till now.