The following article is based on my own interpretation of the said events and/ or publicly available information. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Avijit Nigam, MBA 2016-18, Vinod Gupta School of Management, IIT Kharagpur
This article is based upon regualtion of Ecommerce sector across the globe and the discussion about the same in upcoming G20 summit.
In order to enhance digital trade across the globe, G-20 has asked its member countries including India to provide their views on e-commerce trade. This is mainly done to build a framework which would be used to measure trade digitally. G-20 might also consider the WTO rules for digital trade to provide the basis for rules and regulations.
An interesting point to note is that India does not allow foreign investment in the retail sector of B2C. Various e-commerce players such as Amazon, Flipkart etc. are functioning as marketplaces. India already has reservations regarding e-commerce in WTO agenda.
This move is adopted as international accounting standards are still ambiguous. To enhance the participation, G20 had asked for SME’s in developing and developed countries to promote online trade.
Various considerations are in place to come up with a strong framework and because of this G20 is also collaborating with WTO ministerial conference. The sole motive is to come up with an architecture which promotes e-commerce with new rules in place.
Members have been asked to take into consideration digital trade and economic development while reacting to their views.
According to me, the way E-commerce is emerging, this is a good move. The total retail e-commerce sales are expected to grow from $1.9trillion (2016) to $4.05 trillion in 2020. So a common framework for all developing and developed countries would enhance e-commerce industry. The move to include SME’s will help investors to coagulate funds and come up with an effective commerce strategy. This would help them in the long run.