India may face pressure to open up Ecommerce Sector

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 Any material borrowed from published and unpublished sources has been appropriately referenced.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.

Rakshita Hichkad, MBA 2016-18, Vinod Gupta School of Management, IIT Kharagpur


Ecommerce has made it easier for top American brands to reach Indian customers, and has emerged as one of the fast-growing trade channels available for the cross-border trade of goods and services.

G-20 – the international forum for the governments and central bank governors from 20 major economies has asked various countries, including India for views on enhancing the readiness of countries to engage in digital trade, also how WTO can promote ecommerce and develop a framework to measure cross-border digital trade.

India’s say plays a vital role for the ecommerce to be included in the WTO’s agenda.

Technology enabled innovations such as Digital Payments, Hyper-local Logistics, Analytics driven Customer Engagement and Digital Advertisements has led Indian ecommerce industry to grow at a much faster rate.

Government initiatives such as Digital India, Skill India, Start up India and Make in India are also contributing to the growth of the ecommerce industry.

India needs to aim at empowering Small and Medium Enterprises to make use of the new trade regime on global ecommerce sector

Accepting Ecommerce for international trade will help India in the following ways:

-Minimize geographical isolation that will help Indian exports markets to reduce the costs of finding customers and accessing overseas markets.

-End the digital division that exists between the developed and developing countries

The main challenges for cross border digital trade are lack of international accounting standards and uneven acceptance of ecommerce.

Therefore, Indian Government should commit to be compliant with international standards and aim to strengthen ecommerce, devising investor-friendly guidelines to successfully make, transact and trade in India.



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