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बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
Q. Will new e-commerce rules hurt consumers and sellers?
Mar 31, 2016 Related to : GS Paper-3

Ans :

In a bid to initiate reforms in e-commerce sector the government of India has announced new rules. New rules allow 100% FDI in online retail of goods and services under the ‘marketplace model’ through the automatic route, seeking to legitimize existing e-commerce entities operating in India. Announcement of long overdue policy framework in this sector is welcome move, but many observers expressed their concerns over its current of form.


  • The main issue is with rule which says, marketplace e-commerce entity should not influence (directly or indirectly) the pricing of goods sold on its platform and shall maintain a level playing field. This is construed by most observers as a deterrent for discounts. These guidelines may prohibit online retailers from offering discounts which in turn will hurt the interest of consumers.

  • According to new rules marketplace player (e-commerce entities like Flipkart, Snapdeal) cannot allowed more than 25 per cent of sales through its platform from a single seller and group companies. Though the restriction is to discourage direct vendors participation in e-commerce (inventory-based e-commerce model, where FDI is barred) but it will impact in-house companies which generated more than 25% of sales. As it puts restriction, it will have impact on sellers.


The new guidelines have made the business environment more restrictive. It may hurts both consumers and sellers. If consumers and sellers lose interest in e-commerce then it will have impact on inflow of FDI. Hence government should rethink on these regressive guidelines and encourage e-commerce business with no restriction.

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