Data localization may be key focus area of India’s draft e-trade coverage

Data localization could be one of the main attention regions of the new draft e-commerce policy that is expected to be placed out by means of the department for the promotion of enterprise and inner trade (DPI) as early as a subsequent week, stated two people familiar with the matter, soliciting for anonymity.

“The draft of the policy is ready, simply has to go through the final approval,” stated the first person mentioned above. “This draft, which is anticipated to stress on information localization, will be open to public consultation.”


The improvement comes at a time whilst e-trade companies, along with Flipkart and Amazon India, are making numerous structural modifications following the implementation of the overseas direct funding (FDI) tips, which did now not allow e-commerce agencies with foreign funding to have an fairness stake in dealer entities on its platform, among other regulations.

The branch of trade had popped out with a draft e-trade policy in July, but the DPI become made the nodal agency for e-trade projects in September. It has for the reason that been running in this draft.

Meanwhile, network LocalCircles performed a survey with clients to apprehend what the customers count on from the imminent e-commerce coverage, maximum of which may be covered inside the draft.

“According to customers, the policy must be extensive-primarily based and cover all factors of e-trade, along with electronic journey, meals transport, taxi, and social commerce,” said Sachin Taparia, found the father of LocalCircles. “The coverage ought to additionally cope with key areas of product e-commerce along with minimizing counterfeit products, enhancing the integrity of critiques and rankings, preventing dangerous product sales and ensuring a requirements-based totally customer service mechanism.”

Email queries to DPI searching for touch upon the coverage draft remained unanswered.

The authorities’ e-trade draft coverage, which changed into launched last July, had targeted on numerous elements of the e-trade enterprise, along with barring institution groups of e-trade firms from immediately or circuitously influencing sale prices and restrictions on the stock version, among others. Some of those regulations are actually part of the up to date FDI recommendations that were released as Press Note 2 in December.