• IASbaba
  • April 22, 2021
  • 0
UPSC Articles
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  • GS-3: Science and Technology- developments and their applications and effects in everyday life.
  • GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.


  • With their efficient, quick and reliable logistics network, e-commerce platforms have nudged consumer behaviour patterns from an offline to an online shopping mode. 
  • The utility was also made evident during the pandemic when the world came to a standstill. 
  • E-commerce emerged as an enabler in ensuring the availability of essentials to the masses.
  • E-commerce is going to be increasingly important in the future of retail shopping in India and the world over.
  • The trend will continue to grow with the government’s impetus on digital literacy, also supported by the increasing penetration of internet and smartphone users.

Importance of E-Commerce

  • Small businesses employing an exceptionally large number of workers need to use e-commerce more and more to augment their sales. 
  • These businesses compete against cheap imported goods while they face many disadvantages that unfairly dilutes their competitiveness. 
  • E-commerce provides them with the means to access a much bigger market without having to overly invest in marketing. 
  • This should include more and more foreign markets. 
  • Consumers, have benefited enormously from e-commerce. Also, the harmonious working of online and offline retailers is essential. 
  • With GST and the drive towards digitisation, more small traders need to be enabled to make the transition and take advantage of the expanding opportunities.

Way Ahead

  • Need for a comprehensive FDI policy on trade that takes care of the needs of all the stakeholders: Producers, consumers, service providers in the supply chain and small traders.
  • The policies that have evolved over time need a relook to balance the interests of all in a win-win policy at a time when rapid expansion of the retail, organised retail as well e-commerce sector in India in coming years will create huge opportunities for all.
  • Public policies need to provide an enabling environment and a level-playing field to promote and nurture competition and protect the interests of all. 
  • Public policy on e-commerce needs to place an equal premium on the views and interests of all the stakeholders in the ecosystem to strengthen our domestic businesses and create many more jobs and livelihood opportunities in the country to fulfil the dreams of Atmanirbhar Bharat.

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