Ease norms for e-commerce to thrive: BIPP-ISB report
The Bharati Institute of Public Policy (BIPP), an autonomous policy think-tank under the Indian School of Business (ISB), has stressed the need for creating a single ministry for Foreign Direct Investment (FDI)
Hyderabad: The Bharati Institute of Public Policy (BIPP), an autonomous policy think-tank under the Indian School of Business (ISB), has stressed the need for creating a single ministry for Foreign Direct Investment (FDI).
On norms regarding the e-commerce sector, it said the government should come up with simpler policies on broad norms for foreign companies or for receiving FDI, and not micro-manage the e-commerce business on various aspects, says a new report released on Wednesday by BIPP, as part of a one-year research study on online retail. The report, commissioned by Empower India, analyses the scope and challenges of the e-commerce industry in the country and puts across significant policy changes for the sector's growth and development.
The policies governing FDIs have been complex, overlapping and have many endpoints in terms of involvement of several ministries and government bodies, which make it difficult for various entities to operate and prosper.
"Simplification of norms for conducting business in the retail and e-commerce sectors should be formed by a single ministry in consultation with other related government and non-government bodies," the report suggests, adding that the business norms should also be articulated timely and clearly to avoid interpretation challenges too, specially foreign entities.
"India's socio-economic diversity and varying infrastructurefacilities require a variety of models to fulfil the country's retail needs, which range from 'kirana' shops to supermarkets to online retail. A customer-centric e-commerce domain requires FDI for growth; capacity building for small retailers to ensure their smooth online transition, and alternative platforms to be adopted by the government for a sustainable and comprehensive e-commerce growth," explains Dr Avik Sarkar, Associate Professor, BIPP, and lead author of the report.