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4) The draft e-commerce policy is a welcome step, but has too many echoes from the licence-raj era.  Analyze.(250 words)

Topic-  Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.

4) The draft e-commerce policy is a welcome step, but has too many echoes from the licence-raj era.  Analyze.(250 words)

Economic times

The hindu

Why this question

E-commerce has grown at a very rapid rate in recent years and events like takeover of flipkart by Walmart, have raised the need of an official policy on the sector. The draft e-commerce policy is a welcome step in this direction but it also raises several issues.

Key demand of the question.

The question wants us to look into the draft e-commerce policy and write in detail as to why it is a welcome step. It then wants us to write in detail as to how it imposes the license-raj like restrictions.

Directive word

Analyze- Here we have to dig deep into the issue and identify and discuss about all the related and important aspects and correlate them to satisfy the key demand of the question.

Structure of the answer

Introduction – write a few lines about the rapid growth of e-commerce in the country although it still forms less than 5% of retail market etc.

Body

  • Discuss the salient provisions of the draft policy and bring out its positive points. E.g brought out at an opportune time given the estimated growth of the sector and growing foreign presence; deep discounts countered to provide a level playing field ; DATA LOCALISATION MEASURES; India First measures; measures to support MSMEs.
  • Discuss the limitations/ pitfalls of the draft policy. E.g an overarching single regulator looking into diverse aspects; restrictive measures like  sunset clause on discounts; could drive away those planning online retail forays and the opportunity to create jobs and benefit consumers would be lost etc.

Conclusion– Based on your discussion, form a fair and a balanced conclusion on the given issue.