Draft e-commerce policy will wreak havoc on Indian startups - ET Retail
The policy will end up harming startups, raising market entry barriers and preventing them from innovation.
- It proposed guidelines that would make it mandatory for certain internet intermediaries to set up Indian companies & permanent registered offices in India.
- The proposed policy has many aims, including “empowering domestic entrepreneurs”, levelling the playing field for startups , and encouraging their participation in the digital economy.
- The policy equating ecommerce with the digital economy offers recommendations on wide-ranging areas well beyond just ecommerce, including data governance, intermediary liability, intellectual property, competition, consumer protection, investments and cloud infrastructure.
- The requirement to establish an Indian entity will also dissuade businesses from placing India at the forefront of their business and innovation strategies.
- If GoI wants to encourage entrepreneurs to establish companies in India, its focus must be on ease of doing business reforms, as opposed to forced compliance requirements.