India considers a single law to deal with all aspects of e-commerce

Tinuku - India is mulling a single legislation to address all aspects of e-commerce regulation and it is also exploring the idea of setting up a single regulator to consider all sector-related issues. A single regulator and legislation to address all e-commerce-related issues in the country in a bid to remove the legal fragmentation currently governing the sector.

Some of the measures suggested in the Draft National Policy Framework include local data storage, mandating the use of home-grown card payment network RuPay for online transactions and enhancing the participation of micro, small and medium enterprises in online retail.

Tinuku India considers a single law to deal with all aspects of e-commerce

India will also take steps to develop capacity for storing data and incentivise its domestic storage, the document said, adding that the e-commerce industry could be given time to "adjust before localisation becomes mandatory".

"The government would have access to data stored in India for national security and public policy objectives subject to rules related to privacy, consent etc," the draft policy said.

India's anti-trust regulator will consider changing thresholds so that mergers and acquisitions in the e-commerce sector that potentially distort competition are compulsorily examined, it said. Flipkart, currently in the process of being acquired by U.S. retail giant Walmart, Inc's local unit and Snapdeal, backed by Japan's SoftBank, are among India's key e-commerce firms.