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4) Discuss the impact that the draft e commerce policy is likely to have on online as well as brick and mortar retail?(250 words)

Topic-  Indian economy : issues

4) Discuss the impact that the draft e commerce policy is likely to have on online as well as brick and mortar retail?(250 words)

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Financial express

Why this question

The draft e commerce policy proposes several steps relating to discounts, data security etc which will have a big impact on the e-commerce space. Understanding those impacts is critical for e-commerce sector in which space policy regulations are still in their trial and error phase. These articles discuss the steps suggested in the draft policy as well as critical analysis of the same. Hence this question.

Key demand of the question

The question expects us to bring out the changes that have been suggested by the draft policy, its overall comments on the ecommerce sector. Next , we need to bring out the overall impact of these steps on online retail and brick and mortar retail. We also need to discuss the indirect impacts on jobs etc. Thereafter, we have to give some suggestions or way forward.

Directive word

Introduction – Mention about the growth in e-commerce sector along with potential (substantiate with data).

Body

  • Discuss the needs of a growing e-commerce sector and the policy steps suggested in draft policy such as ending discounts after 2 years, 49% FDI in inventory model etc
  • Examine the needs of ecommerce sector and whether a policy micromanaging their pricing etc would impact them. Examine the suggestions like cap on discounts, and how it would impact the bottom-line of online retailers whose USP is selling at lower prices. Discuss the impact of allowing 49% FDI in inventory model but control to remain with Indian etc
  • Examine whether the focus of the policy is more on protecting brick and mortar retailers whose businesses are being impacted by growth of ecommerce players
  • Examine the real challenges faced by e-commerce players like capital availability, infrastructure for logistics services, EoDB which needs to be addressed

Conclusion – Give your view on the policy and discuss way forward.