Welcome Guest

Businessex.Com
Home News eCommerce must be treated at par with brick and mortar businesses: IAMAI

eCommerce must be treated at par with brick and mortar businesses: IAMAI

Tags: e-commerce, Arun Jaitley, Budget 2015-16, entrepreneurship, IAMAI, Narendra Modi, online retail, retail industry, DIPP

February 28, 2015 | COMMENTS ( 0 )

eCommerce must be treated at par with brick and mortar businesses: IAMAI

As Internet penetration in India is on the rise, the eCommerce sector in the country is likely to witness a growth of over 50 per cent in the next 5 years, says the recently released Economic Survey 2014-15.

The government document, however, raised concerns over consumer safeguards and proposed amendments to the Consumer Protection Act.

“India’s eCommerce market is expected to grow by more than 50 per cent in the next five years,” the Economic Survey 2014-15, tabled in Parliament by Finance Minister Arun Jaitley, said.

Further, the Internet and Mobile Association of India (IAMAI) has supported and welcomed the move by the Department of Industrial Policy and Promotion (DIPP) to support the growth of the eCommerce sector in India.

Concurring with DIPP, IAMAI, in a press note, said that eCommerce must be treated at par with brick and mortar businesses, and there should be minimum interference to help this sector grow. The association contends that the sector should be encouraged to promote innovation and the spirit of entrepreneurship.

IAMAI has pointed out that any plans to regulate the industry will slow down the government’s plan to attract investments as well as to create jobs, which in turn will also impact the economy.

On the hurdles being faced by the sector, the Economic Survey said: “Inventory management, logistics planning and resource availability are important hurdles for online retail in India. Consumer safeguard being another concern for consumers of eCommerce, the government proposes including sufficient provisions in the ongoing amendment to the Consumer Protection Act, 1986.”

The association has said that for millions of small sellers who can neither afford an expensive shop front nor have a brand to sell, online marketplaces have come as a boon by giving them a platform, which has helped them in having a wider market access, as well as the support of a well-known brand. Online Marketplace have helped the retailers with a physical store to sell across the country, thus creating employment opportunities for thousands of educated and uneducated Indians, and also fostering the spirit of entrepreneurship.

Prime Minister Modi, in his address at the Confederation of All India Traders (CAIT) National Convention, said: "We have to accept modern technology. Even a man from a small town looks for branded products these days. But our small traders do not have the resources to take space in malls, hire English-speaking sales people. But can't you set up an online unit? You can create virtual malls in small shops."

eCommerce firms today are at a cross-road due to indirect tax issues, particularly from the State Governments. IAMAI in its pre-budget submission has also requested the Finance Minister to address the anomaly and ensure for the smooth operation of these online marketplaces.

Please add your comment

Rating
Not readable? Change text.
Enter the characters as seen on the image (case insensitive)
  Notify me of followup comments via e-mail   Subscribe for daily newsletter

Other NEWS

Delhi based startup i2e1 raises $5,00,000

Delhi based startup i2e1 raises $5,...

December 10, 2015

Delhi-based i2e1, a smart network player platform which aims to provide low-cost and free internet to consumers and actionable ana....

Cab aggregators collaborate with state governments to boost entrepreneurship

Cab aggregators collaborate with st...

November 06, 2015

Ola and Uber, cab aggregators have signed agreements with Rajasthan government for skill development and creation of entrepreneuri....

Phase II of startup incubator T-Hub to be operational soon

Phase II of startup incubator T-Hub...

November 04, 2015

Telangana government is planning to expand T-Hub, its ambitious incubator programme, in its second phase with about Rs 150 crore i....

Sabse Technologies receives investment from Ratan Tata

Sabse Technologies receives investm...

November 04, 2015

Global telecom carrier, Sabse Technologies Inc, started by Hotmail Founder Sabeer Bhatia today announced that Tata Sons' Chairman ....

Mobile startup BlackNGreen seeks international expansion

Mobile startup BlackNGreen seeks in...

November 02, 2015

Buoyed by a strong demand for value added services, mobile startup BlackNGreen is eyeing revenue of Rs 350 crore in the next one y....

Startups seek better future under Hay Group's programme

Startups seek better future under H...

October 30, 2015

Global management consultancy, Hay Group will help 100 selected entrepreneurs transform their startups into successful companies o....

Quintype raises USD 3.25 million for product enhancement

Quintype raises USD 3.25 million fo...

October 27, 2015

Quintype, a data-driven publishing company raised USD 3.25 million to enhance product and business development. ....

Hospitality aggregator startup Qik Stay raises $250K

Hospitality aggregator startup Qik ...

October 27, 2015

Delhi-based Qik Stay, a hotel branding and aggregator startup, has raised $250K in seed round of funding from venture capital firm....

Milk Mantra targets a turnover of Rs 150 crore this fiscal

Milk Mantra targets a turnover of R...

October 26, 2015

Odisha-based startup dairy firm, Milk Mantra is targeting a turnover of Rs 150 crore this fiscal.....

Vista Rooms creates app on Instagram, targets tier II & III cities

Vista Rooms creates app on Instagra...

October 23, 2015

Mumbai-based online budget accommodation aggregator, Vista Rooms has created an app-like experience on Instagram where travellers ....

Jiyo Natural receives funding from Indian Angel Network

Jiyo Natural receives funding from ...

October 23, 2015

Indian Angel Network (IAN) has invested an undisclosed amount in Bengaluru-based consumer health food startup, Jiyo Natural.....

​​Vodoo raises USD 1 million from SAIF Partners

​​Vodoo raises USD 1 mi...

October 15, 2015

Deals and price comparison application, Vodoo has raised USD 1 million (around Rs 65 lakh) from SAIF Partners in a seed funding ro....

IBM launches public data centre in Chennai, partners with Nasscom to boost start ups

IBM launches public data centre in ...

October 15, 2015

Technology giant, IBM today launched public data centre in Chennai to tap into growing demand from financial services and governme....

For Nasscom, PPP will boost startups in India

For Nasscom, PPP will boost startup...

October 14, 2015

In the wake of some reservations over the central government creating startup funds, Nasscom's "10,000 startups" Vice President, R....

WalmartLabs to seek partnership with Indian startups

WalmartLabs to seek partnership wit...

October 14, 2015

WalmartLabs, the digital arm of US-based retailing major Walmart Stores, is scouting for startups in India for partnership and wor....