Niti Aayog CEO Amitabh Kant believes that e-commerce has revolutionized the retail sector in India and there are strong indications that it will play a massive role in India’s growth in the near future. He also added that this growth in the retail market will be substantial and play a huge role in the country’s GDP and give a huge boost to job opportunities.
According to Kant, India, which is currently growing at 7 per cent, has the ability to chug along at 9 per cent, but the e-commerce market will have to take the lead and play a major role.
“E-commerce market has brought a revolution in India’s retail sector and nobody can stop it now,” he said at an event in New Delhi.
As far as the data is concerned, in a recent assessment, the Central Statistics Office (CSO), revised the country’s growth estimate for the full fiscal (2018-19) to 7 per cent which is lower than an early estimate of 7.2 per cent.
However, there is good news for the e-commerce sector. As per a report by Deloitte India and Retail Association of India, India’s e-commerce market will touch USD 84 billion in 2021 from the current numbers of USD 24 billion in 2017, primarily on the back of organized retail sector.
Speaking at the same event, secretary general of trade body CAIT’s Praveen Khandelwal said the current e-commerce is spoiled by online companies as they do not hesitate in indulging into predatory pricing, deep discounting and lose funding. He also asked the government to be more vigilant and impose restrictions on any such companies and practices.
“The government should constitute the regulatory authority for e-commerce and cash on delivery service for e-commerce should be banned,” Khandelwal said.
The Indian government, which has been giving a push to the online sector, released the draft national e-commerce policy on February 23. There were proposals in the draft which aimed at setting up a legal and technological framework for restrictions on cross-border data flow. Also, there were conditions mentioned for businesses regarding the collection or processing of sensitive data locally and storing it abroad.