Despite much of investment, government of India seeks to resist e-commerce rules at global level. Explain (200 Words)
Refer - Business Standard
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K. V. A 5 years
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IAS Parliament 5 years
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IAS Parliament 5 years
KEY POINTS
E-commerce and digital trade are likely to be among the biggest value creators in economies — and particularly for the Indian economy.
In fact, much of the recent investment in India is in this or related space. The Indian government has also been active in drafting and enacting rules in this space, many of which have greatly upset foreign players.
Reasons for resistance
· However, it appears that India is an outlier in global terms when it comes to its attitude toward the regulation of e-commerce and digital trade.
· As the rules framed at global level prevent domestic regulations that restrict the free flow of data across borders.
· There is also a move to prevent domestic governments from bullying transnational companies from handing over source code or proprietary software.
· India, is, however, determined to try and block any international framework on e-commerce on digital trade.
· This reflects its own recent moves to force data localisation, which restricts the free flow of data generated by Indian consumers across borders.
· Multinational companies operating in the e-commerce space have also been subject to increasingly restrictive and even arbitrary rules.
· India also wants to make sure that the needs of its IT service sector are met. However, it is far from clear whether Indian IT services would be harmed or benefited from a global architecture that opens up these services.
· The question of data localisation is more fraught, and is not settled domestically in spite of recent government efforts.
· While large Indian companies may benefit from data protectionism and the government has legitimate questions about national security, Indian consumers and smaller companies and start-ups stand to benefit greatly from a free flow of data.
· Plurilateral agreements that leave India behind would not be to its benefit. It is necessary therefore to seek more allies for its viewpoint. A combination of compromise and outreach will be necessary.
