Single regulator for e-commerce sector will boost retail expansion in India: Netree

Netree has welcomed the government move to form a single regulator for e-commerce sector.

Speaking on the development, Desi Valli says, “This move will boost the formal retail expansion in India by 70% in the next five years. The single regulator will reduce the legalities and fragmentation governing the e-commerce sector by bringing everything under one umbrella. And, with reduction in the multiplicity of compliances, ease-of-doing business will be promoted across all sectors.”

Desi further says, “There are about 14 million registered retailers and 20 million unregistered retailers in India with combined capacity of 15% share in the GDP.” India is expected to become the world's third-largest consumer economy, reaching US$1.2 trillion by 2022. A single regulator for e-commerce will surely hasten the process, he added. This move will also contribute to the growth of omni-channels, as smaller retailers will find it easier to establish their own e-commerce business models.

Commenting on the government intent for e-commerce and social media firms to exclusively store customer data locally, Desi says, “It’s an intelligent and timely move, which will not only bring needed transparency but will also address the privacy issue. Additionally, it will help a lot of local tech start-up companies and inspire them to innovate and explore their potential in the country.” “This will also set the benchmark vis-a-vis ‘complaint business ecosystem’ for the players who are not a part of e-commerce industry. Yet, they will admire and emulate the process, showing a responsible behaviour,” Desi adds.

“Additionally, the consumer feedback will be more accurate and precise as the data breach issues will be curtailed. This will help in engaging the trust and better communication between the brands and consumers and also between all intermediaries in the chain,” Desi adds.

Desi opines, “India’s e-commerce market, which is estimated to be $200 billion in the next 10 years, will see tightening in the scrutiny of mergers so that even small deals that potentially distort competition are compulsorily examined by the country’s anti-trust regulator, encouraging competitiveness in the industry.”

Also, Desi has expressed happiness over the draft policy as it will forbid companies and sellers who buy in bulk, because currently this trend throttles the competiveness and hampers the growth of e-commerce business.