Legislation and regulation needed to nurture markets such as e-commerce, says Gowda
Too much regulation will lead to both money and people moving elsewhere from investing in India’s e-commerce which is expecting 8% growth by 2025 from 4% in 2020.
“Too much regulation will lead to both money and people moving elsewhere,” Prof. D. Daniel Sokol, Carolyn Craig Franklin Chair in Law and Business at USC, cautioned in a report ‘Promotion and Regulation of E-Commerce in India’.
He called for a collaborative approach between regulators and regulatees relating to globally competing investments in E-commerce.
His comments were reported in a release on 11 July 2022 by Empower India, a leading policy think tank, which hosted a panel discussion on the report by “Parliamentary Standing Committee Report on E-Commerce Needs More Clarity”.
E-commerce has transformed how business is done in India. Driven by digitization and internet penetration, the industry has created immense opportunities and convenience for consumers and sellers alike, noted the report.
“The industry has shown steadfast growth, and is expected to grow from 4% in 2020 to 8% by 2025,” said the report.
“They also need to be flexible and adaptable to respond appropriately to data and analysis as they emerge over time.”
DPIIT Former Secretary Ramesh Abhishek added, “Regulators should view the retail market as a whole and should not differentiate between online and offline channels while making and enforcing regulations.
“The interests of consumers and MSMEs should be given priority by policy makers. The disparity between online and offline markets and micromanagement of the sector will adversely affect competition and will not bear any benefits for consumers.”
Abhishek Kumar from New Indian Consumer Initiative (NICI) Secretariat, added, “Without evidence of any explicit harm, we are ignoring the ancillary benefits of e-commerce.
“There is a need for both vertical and horizontal analysis of the marketplace while framing the policy, instead of over-regulating the sector. Smaller players must be encouraged to learn from large players and other countries. Integration of citizens and marketplaces is the ultimate purpose.”
Dr. Angshuman Hazarika, Assistant Professor, IIM Ranchi, pointed out, “We need to think of a simpler alternative if regulations increase compliance on small sellers.
The goal is to create a level playing field for both large and small companies and come up with regulations that are not too stringent for the growth of small businesses.”
He elaborated, “There is a need to understand shared accountability. E-commerce platforms are simply intermediaries in this ecosystem. If it is expected from the intermediary to be neutral, then we must establish how the role of intermediaries in neutral markets is maintained.”
Empower India Director General K. Giri talked about the initiative, “Consultations like these are intended to provide our policymakers with enough data from experts for their consideration.
“India is at the cusp of unprecedented economic growth during a sluggish global economy and we should deter from taking any steps that may harm this growth.” fiinews.com
