E-commerce policies for foreign players and local collaboration in India

Abstract

Retail has always been a constantly evolving industry in India. From barter to brick to mortar to online delivery, it has transitioned its ways. Retail, contributes to 10% of lndia's GDP and 8% to employment. India also ranks fifth in the world for its retail space. Given how dynamic and fast paced the industry is, there has been a constant in and out movement of both Indian and international players. The opening up of economy back in 1990s also paved the way for a lot more foreign entrants into the economy. This also makes a case for the government to intervene and put limitations on what the players can do. While there is a need to ensure fair play through competition laws, there also needs to be a check on entry of foreign players and protecting the interests of the local players. E-comrnerce space particularly has been booming since the pandemic struck. Quick delivery, wide assortment, doorstep delivery convenience has made consumers stay even when the harsh effects of the pandemic seem to normalise. The Indian retail market is also expected to grow to US$ 120-140 billion by FY26. In terms of demand, India stands at third on number of e-comrnerce shoppers. Being a welfare state, the onus is on the government to ensure that much of this growth trickles down to local players and helps boost income of its people. Thus, the government constantly keeps updating its policies in thee-commerce space which requires foreign players entering Indian markets to have some level of local ownership or involvement in the form of partnerships to ensure that the local market and players also reap the benefits of foreign entrants and are not outplayed by them.