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Evaluate the risk of stifling the e-commerce sector due to the government’s propensity for its regulations to protect the local traders.

Topic: Effects of Liberalization on the Economy, Changes in Industrial Policy and their effects on Industrial Growth

5. Evaluate the risk of stifling the e-commerce sector due to the government’s propensity for its regulations to protect the local traders. (250 words)

Reference:  Live Mint

Why the question:

The article highlights the risk of stifling the e-commerce sector due to the government’s propensity for its regulation to protect the local traders.

Key Demand of the question:

Examine the risk of stifling the e-commerce sector due to the government’s propensity for its regulations to protect the local traders.

 Directive:

Evaluate – When you are asked to evaluate, you have to pass a sound judgement about the truth of the given statement in the question or the topic based on evidences.  You have to appraise the worth of the statement in question. There is scope for forming a personal opinion here.

Structure of the answer:

Introduction:

Start with the context of the question; The Centre put out proposals to tighten e-com regulations for consumer protection. E-com firms must appoint resident officers to address grievances and monitor rule-compliance, and then be ready to share information sought by authorities within 72 hours.

Body:

The answer body must have the following aspects covered:

Discuss the efforts to shield local retailers; India began to open up its economy three decades ago, but efforts to shield local retailers resulted in a retail sector fraught with a thicket of rules.

Analyse the issues with regulations that have been put in place recently.

Conclusion:

Conclude that what e-com users are now at risk of suffering, though, is a hobbled industry. If all e-com websites are forced into a statist mold meant for generic market platforms, these companies could lose their ability to set themselves apart, outperform rivals and serve the market’s ultimate cause.