Gist of Editorials: Strange Deal (The Hindu) | GS – III

Relevance : GS Paper III (Indian Economy)

[460 words reduced to 160]


  • In order to quell the disquiet among offline retailers, government has formulated a new e-commerce policy.
  • The NEW policy:
    • The new rules bar sales for over 25% of sales in a marketplace by any entities where the e-com firm has an equity stake.
    • Any specialised back-end support for some sellers must now be extended to all vendors.
    • An e-commerce marketplace entity will not mandate any seller to offer a product exclusively on its platform rules.
  • Problems with the NEW policy
    • FDI in e-commerce could decrease
    • There may be loss of jobs
    • Create perception of India being unpredictable in terms of policies.
    • Restricts freedom of a seller to sell exclusively on one e-com portal
    • It goes against the fairness and level playing field
  • Way forward: Globally, India has been taking on protectionism, the same non-protectionist tenets must be applied for internal trade.
  • India’s retail FDI policy remains muddled with the new e-commerce policy.