­
New rules on e-commerce creating problem | PT's IAS Academy
HomeUPSC Mains GS IIIPrelimsIndian EconomyLatest Current AffairsEssay paper

New rules on e-commerce creating problem

SHARE:

The e-commerce market is rattled by the proposed new rules, and other Ministries are objecting to the same as well.

SHARE:

 New rules on e-commerce creating problem

Read more on - Polity | Economy | Schemes | S&T | Environment

  • The story: The e-commerce (or e-tail) market in India grew rapidly through the decade of 2010s, and created new opportunities. But it also ran afoul of many in the offline trade, who demanded restrictions on the operations of e-comm giants. Eventually, the government came up with new rules.
  • Dissent: The new proposed rules that want to tighten the working of fast-growing e-commerce market have run into internal government dissent. Media reports indicated that Ministry of Finance described some proposals as "excessive" and "without economic rationale".
  1. The market features global retail heavyweights from Amazon to Walmart, plus domestic players like Reliance Industries and Tata Group.
  2. The sector is forecast by Grant Thornton to be worth $188 billion by 2025.
  3. More than 12 objections were received from the finance ministry, which will force a policy rethink.
  • The tough rules: The June '21 rules hit the e-commerce world as proposals ranged from limiting 'flash sales', reining in a push to promote private-label brands push and raising scrutiny of relationships between online marketplace operators and their vendors. There was not formal implementation timeline for the new rules. (many of these were based on suggestions from Consumer Affairs ministry)
  1. The rules came after many complaints from brick-and-mortar retailers about alleged unfair practices of foreign companies
  2. But they drew protest from the giant Tata Group (more than $100 billion in revenue) which is now planning an e-commerce expansion
  3. The finance ministry, the ministry of corporate affairs (MCA) and the federal think-tank NITI Aayog have all raised objections
  • Thrust of objections: The proposals go far beyond their stated aim of protecting consumers and also lack regulatory clarity. They also appear "excessive" and would hit a sector that could boost job creation as well as tax revenue. They place restrictions on a sunrise sector and 'ease of doing business', while what is needed is 'light-touch regulations'. The objections noted that the proposed rules send the message of unpredictability and inconsistency in policy-making.
  1. The arguments by the finance ministry and NITI Aayog were in line with concerns raised by sector operators, and even the U.S. government
  2. They objected to the hard-line regulatory approach that especially hurts American players
  • Stand of Piyush Goyal: The consumer affairs minister Goyal has disagreed with the brick-and-mortar retailers stating that big U.S. firms bypassed Indian laws and their practices hurt small retailers. The ministry said the new rules were aimed to "further strengthen the regulatory framework" and were issued after complaints of "widespread cheating and unfair trade practices being observed in the e-commerce ecosystem."
  • Specific case: The corporate affairs ministry objected to one proposed clause that said e-commerce firms should not abuse their dominant position in India. The ministry said the provision was "unnecessary and superfluous", and that the subject was best handled by India's antitrust watchdog. No new mini-competition laws are needed. The finance ministry has taken a harder stance and raised a total of 12 objections. The proposal that makes online shopping websites liable for its sellers' mistakes would be a "huge dampener". It protested the banning of flash sales, which see deep discounts on offer on websites like Amazon and are popular during festive seasons.
  • Summary: The primary problem started with the FDI norm itself, which theoretically ban marketplace owners (e.g. Amazon, Flipkart) to be the major sellers on their own platforms (directly or via proxies). But most actually follow that basic business model, via other names. The objection then expanded to other minute details of their functioning. Given that the e-comm ecosystem helped India hugely during the pandemic, the government may finally dilute some of the rules.
  • EXAM QUESTIONS: (1) Explain the nature of the Indian e-commerce market. What do the new rules propose? (2) What are the core issues raised as objections by other Ministries, on the proposed e-comm rules by the Consumer Affairs Ministry? Explain.
Read more on - Polity | Economy | Schemes | S&T | Environment

#ecommerce #etail #Amazon #Walmart #FinanceMinistry #FDI #retail



* Content sourced from free internet sources (publications, PIB site, international sites, etc.). Take your own subscriptions. Copyrights acknowledged.
Name

01-01-2020,1,04-08-2021,1,05-08-2021,1,06-08-2021,1,28-06-2021,1,Abrahamic religions,6,Afganistan,1,Afghanistan,35,Afghanitan,1,Afghansitan,1,Africa,2,Agri tech,2,Agriculture,150,Ancient and Medieval History,51,Ancient History,4,Ancient sciences,1,April 2020,25,April 2021,22,Architecture and Literature of India,11,Armed forces,1,Art Culture and Literature,1,Art Culture Entertainment,2,Art Culture Languages,3,Art Culture Literature,10,Art Literature Entertainment,1,Artforms and Artists,1,Article 370,1,Arts,11,Athletes and Sportspersons,2,August 2020,24,August 2021,239,August-2021,3,Authorities and Commissions,4,Aviation,3,Awards and Honours,26,Awards and HonoursHuman Rights,1,Banking,1,Banking credit finance,13,Banking-credit-finance,19,Basic of Comprehension,2,Best Editorials,4,Biodiversity,46,Biotechnology,47,Biotechology,1,Centre State relations,19,CentreState relations,1,China,81,Citizenship and immigration,24,Civils Tapasya - English,92,Climage Change,3,Climate and weather,44,Climate change,60,Climate Chantge,1,Colonialism and imperialism,3,Commission and Authorities,1,Commissions and Authorities,27,Constitution and Law,467,Constitution and laws,1,Constitutional and statutory roles,19,Constitutional issues,128,Constitutonal Issues,1,Cooperative,1,Cooperative Federalism,10,Coronavirus variants,7,Corporates,3,Corporates Infrastructure,1,Corporations,1,Corruption and transparency,16,Costitutional issues,1,Covid,104,Covid Pandemic,1,COVID VIRUS NEW STRAIN DEC 2020,1,Crimes against women,15,Crops,10,Cryptocurrencies,2,Cryptocurrency,7,Crytocurrency,1,Currencies,5,Daily Current Affairs,453,Daily MCQ,32,Daily MCQ Practice,573,Daily MCQ Practice - 01-01-2022,1,Daily MCQ Practice - 17-03-2020,1,DCA-CS,286,December 2020,26,Decision Making,2,Defence and Militar,2,Defence and Military,281,Defence forces,9,Demography and Prosperity,36,Demonetisation,2,Destitution and poverty,7,Discoveries and Inventions,8,Discovery and Inventions,1,Disoveries and Inventions,1,Eastern religions,2,Economic & Social Development,2,Economic Bodies,1,Economic treaties,5,Ecosystems,3,Education,119,Education and employment,5,Educational institutions,3,Elections,37,Elections in India,16,Energy,134,Energy laws,3,English Comprehension,3,Entertainment Games and Sport,1,Entertainment Games and Sports,33,Entertainment Games and Sports – Athletes and sportspersons,1,Entrepreneurship and startups,1,Entrepreneurships and startups,1,Enviroment and Ecology,2,Environment and Ecology,228,Environment destruction,1,Environment Ecology and Climage Change,1,Environment Ecology and Climate Change,458,Environment Ecology Climate Change,5,Environment protection,12,Environmental protection,1,Essay paper,643,Ethics and Values,26,EU,27,Europe,1,Europeans in India and important personalities,6,Evolution,4,Facts and Charts,4,Facts and numbers,1,Features of Indian economy,31,February 2020,25,February 2021,23,Federalism,2,Flora and fauna,6,Foreign affairs,507,Foreign exchange,9,Formal and informal economy,13,Fossil fuels,14,Fundamentals of the Indian Economy,10,Games SportsEntertainment,1,GDP GNP PPP etc,12,GDP-GNP PPP etc,1,GDP-GNP-PPP etc,20,Gender inequality,9,Geography,10,Geography and Geology,2,Global trade,22,Global treaties,2,Global warming,146,Goverment decisions,4,Governance and Institution,2,Governance and Institutions,773,Governance and Schemes,221,Governane and Institutions,1,Government decisions,226,Government Finances,2,Government Politics,1,Government schemes,358,GS I,93,GS II,66,GS III,38,GS IV,23,GST,8,Habitat destruction,5,Headlines,22,Health and medicine,1,Health and medicine,56,Healtha and Medicine,1,Healthcare,1,Healthcare and Medicine,98,Higher education,12,Hindu individual editorials,54,Hinduism,9,History,216,Honours and Awards,1,Human rights,249,IMF-WB-WTO-WHO-UNSC etc,2,Immigration,6,Immigration and citizenship,1,Important Concepts,68,Important Concepts.UPSC Mains GS III,3,Important Dates,1,Important Days,35,Important exam concepts,11,Inda,1,India,29,India Agriculture and related issues,1,India Economy,1,India's Constitution,14,India's independence struggle,19,India's international relations,4,India’s international relations,7,Indian Agriculture and related issues,9,Indian and world media,5,Indian Economy,1248,Indian Economy – Banking credit finance,1,Indian Economy – Corporates,1,Indian Economy.GDP-GNP-PPP etc,1,Indian Geography,1,Indian history,33,Indian judiciary,119,Indian Politcs,1,Indian Politics,637,Indian Politics – Post-independence India,1,Indian Polity,1,Indian Polity and Governance,2,Indian Society,1,Indias,1,Indias international affairs,1,Indias international relations,30,Indices and Statistics,98,Indices and Statstics,1,Industries and services,32,Industry and services,1,Inequalities,2,Inequality,103,Inflation,33,Infra projects and financing,6,Infrastructure,252,Infrastruture,1,Institutions,1,Institutions and bodies,267,Institutions and bodies Panchayati Raj,1,Institutionsandbodies,1,Instiutions and Bodies,1,Intelligence and security,1,International Institutions,10,international relations,2,Internet,11,Inventions and discoveries,10,Irrigation Agriculture Crops,1,Issues on Environmental Ecology,3,IT and Computers,23,Italy,1,January 2020,26,January 2021,25,July 2020,5,July 2021,207,June,1,June 2020,45,June 2021,369,June-2021,1,Juridprudence,2,Jurisprudence,91,Jurisprudence Governance and Institutions,1,Land reforms and productivity,15,Latest Current Affairs,1136,Law and order,45,Legislature,1,Logical Reasoning,9,Major events in World History,16,March 2020,24,March 2021,23,Markets,182,Maths Theory Booklet,14,May 2020,24,May 2021,25,Meetings and Summits,27,Mercantilism,1,Military and defence alliances,5,Military technology,8,Miscellaneous,454,Modern History,15,Modern historym,1,Modern technologies,42,Monetary and financial policies,20,monsoon and climate change,1,Myanmar,1,Nanotechnology,2,Nationalism and protectionism,17,Natural disasters,13,New Laws and amendments,57,News media,3,November 2020,22,Nuclear technology,11,Nuclear techology,1,Nuclear weapons,10,October 2020,24,Oil economies,1,Organisations and treaties,1,Organizations and treaties,2,Pakistan,2,Panchayati Raj,1,Pandemic,137,Parks reserves sanctuaries,1,Parliament and Assemblies,18,People and Persoalities,1,People and Persoanalities,2,People and Personalites,1,People and Personalities,189,Personalities,46,Persons and achievements,1,Pillars of science,1,Planning and management,1,Political bodies,2,Political parties and leaders,26,Political philosophies,23,Political treaties,3,Polity,485,Pollution,62,Post independence India,21,Post-Governance in India,17,post-Independence India,46,Post-independent India,1,Poverty,46,Poverty and hunger,1,Prelims,2054,Prelims CSAT,30,Prelims GS I,7,Prelims Paper I,189,Primary and middle education,10,Private bodies,1,Products and innovations,7,Professional sports,1,Protectionism and Nationalism,26,Racism,1,Rainfall,1,Rainfall and Monsoon,5,RBI,73,Reformers,3,Regional conflicts,1,Regional Conflicts,79,Regional Economy,16,Regional leaders,43,Regional leaders.UPSC Mains GS II,1,Regional Politics,149,Regional Politics – Regional leaders,1,Regionalism and nationalism,1,Regulator bodies,1,Regulatory bodies,63,Religion,44,Religion – Hinduism,1,Renewable energy,4,Reports,102,Reports and Rankings,119,Reservations and affirmative,1,Reservations and affirmative action,42,Revolutionaries,1,Rights and duties,12,Roads and Railways,5,Russia,3,schemes,1,Science and Techmology,1,Science and Technlogy,1,Science and Technology,819,Science and Tehcnology,1,Sciene and Technology,1,Scientists and thinkers,1,Separatism and insurgencies,2,September 2020,26,September 2021,444,SociaI Issues,1,Social Issue,2,Social issues,1308,Social media,3,South Asia,10,Space technology,70,Startups and entrepreneurship,1,Statistics,7,Study material,280,Super powers,7,Super-powers,24,TAP 2020-21 Sessions,3,Taxation,39,Taxation and revenues,23,Technology and environmental issues in India,16,Telecom,3,Terroris,1,Terrorism,103,Terrorist organisations and leaders,1,Terrorist acts,10,Terrorist acts and leaders,1,Terrorist organisations and leaders,14,Terrorist organizations and leaders,1,The Hindu editorials analysis,58,Tournaments,1,Tournaments and competitions,5,Trade barriers,3,Trade blocs,2,Treaties and Alliances,1,Treaties and Protocols,43,Trivia and Miscalleneous,1,Trivia and miscellaneous,43,UK,1,UN,114,Union budget,20,United Nations,6,UPSC Mains GS I,584,UPSC Mains GS II,3969,UPSC Mains GS III,3071,UPSC Mains GS IV,191,US,63,USA,3,Warfare,20,World and Indian Geography,24,World Economy,404,World figures,39,World Geography,23,World History,21,World Poilitics,1,World Politics,612,World Politics.UPSC Mains GS II,1,WTO,1,WTO and regional pacts,4,अंतर्राष्ट्रीय संस्थाएं,10,गणित सिद्धान्त पुस्तिका,13,तार्किक कौशल,10,निर्णय क्षमता,2,नैतिकता और मौलिकता,24,प्रौद्योगिकी पर्यावरण मुद्दे,15,बोधगम्यता के मूल तत्व,2,भारत का प्राचीन एवं मध्यकालीन इतिहास,47,भारत का स्वतंत्रता संघर्ष,19,भारत में कला वास्तुकला एवं साहित्य,11,भारत में शासन,18,भारतीय कृषि एवं संबंधित मुद्दें,10,भारतीय संविधान,14,महत्वपूर्ण हस्तियां,6,यूपीएससी मुख्य परीक्षा,91,यूपीएससी मुख्य परीक्षा जीएस,117,यूरोपीय,6,विश्व इतिहास की मुख्य घटनाएं,16,विश्व एवं भारतीय भूगोल,24,स्टडी मटेरियल,266,स्वतंत्रता-पश्चात् भारत,15,
ltr
item
PT's IAS Academy: New rules on e-commerce creating problem
New rules on e-commerce creating problem
The e-commerce market is rattled by the proposed new rules, and other Ministries are objecting to the same as well.
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEieTsc2NiPjGg9Fye_vW-nxzeSe4p5HHoumdy0r9JESpusYWDQaiPpwfmAmFzLEo3RUoJKcn0bht67Qqu4nZCyCAKXGjGPTyyQTz7oDlzb2NzJXkK-jtdxeZHdHTLGLWG-ciPujxWYMVfs/s16000/1-1.jpg
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEieTsc2NiPjGg9Fye_vW-nxzeSe4p5HHoumdy0r9JESpusYWDQaiPpwfmAmFzLEo3RUoJKcn0bht67Qqu4nZCyCAKXGjGPTyyQTz7oDlzb2NzJXkK-jtdxeZHdHTLGLWG-ciPujxWYMVfs/s72-c/1-1.jpg
PT's IAS Academy
https://civils.pteducation.com/2021/09/New-rules-on-e-commerce-creating-problem-Prelims-UPSCMainsGSIII-Essaypaper-Markets-GovernmentDecisions-GovernmentSchemes-IndianEconomy-InstitutionsandBodies-WorldEconomy-September2021.html
https://civils.pteducation.com/
https://civils.pteducation.com/
https://civils.pteducation.com/2021/09/New-rules-on-e-commerce-creating-problem-Prelims-UPSCMainsGSIII-Essaypaper-Markets-GovernmentDecisions-GovernmentSchemes-IndianEconomy-InstitutionsandBodies-WorldEconomy-September2021.html
true
8166813609053539671
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow TO READ FULL BODHI... Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy