Scrap B2C curbs
The proposed curbs on business to consumer firms that sell goods through the Internet are a retrograde idea. Anything that the Internet firms sell from abroad has to go through the tariff and duty regimes of the Indian government. That ensures the government revenue. Currently it is a 2500 crore market and growing at robust clip.
Unwarranted curbs on this growing business could lead to constriction of revenues and loss of jobs. At the heart of the issue is the fact that selling though Internet is not a vending matter but that of commerce. Put differently, it is in the realm of tariff and not retail policy.
What is more, the move could lead to retaliation from foreign countries and impact sourcing of goods from India thought the internet - which is a far larger business.
In fact the government would do well to encourage this business by simplifying norms for warehousing, logistics and the cold chain since. It should be borne in mind that the “at the door step” industry globally generates a substantial number of jobs and in time could compare with the growth of pure play retail. The potential for business to customer industry is enormous given the increase in broadband connections and greater online security in commercial transactions.
There is need for the government to allow greater equity in e commerce ventures that are pegged at 51 per cent and to libralise the current regime that does not allow any equity in foreign firms wanting to business to customer e commerce in India.
This is not to say that the Internet based businesses do not need regulation. There are cases of fraudulent and late delivery and also of banned goods making there way into India through the Internet based e commerce model. These should be regulated and not the system of supply and selling.
Internet based business to customer model is good for another reason. It is at the cutting edge of information driven business and add to the competitive capabilities of an economy. An Internet based model cuts waste and inventories and invests in technology for speedy delivery. This is turn ensures that even off line firms become leaner and more competitive. It is an industry that needs to be encouraged and not – as the proposed measures could – nipped in the bud.
The proposed curbs on business to consumer firms that sell goods through the Internet are a retrograde idea. Anything that the Internet firms sell from abroad has to go through the tariff and duty regimes of the Indian government. That ensures the government revenue. Currently it is a 2500 crore market and growing at robust clip.
Unwarranted curbs on this growing business could lead to constriction of revenues and loss of jobs. At the heart of the issue is the fact that selling though Internet is not a vending matter but that of commerce. Put differently, it is in the realm of tariff and not retail policy.
What is more, the move could lead to retaliation from foreign countries and impact sourcing of goods from India thought the internet - which is a far larger business.
In fact the government would do well to encourage this business by simplifying norms for warehousing, logistics and the cold chain since. It should be borne in mind that the “at the door step” industry globally generates a substantial number of jobs and in time could compare with the growth of pure play retail. The potential for business to customer industry is enormous given the increase in broadband connections and greater online security in commercial transactions.
There is need for the government to allow greater equity in e commerce ventures that are pegged at 51 per cent and to libralise the current regime that does not allow any equity in foreign firms wanting to business to customer e commerce in India.
This is not to say that the Internet based businesses do not need regulation. There are cases of fraudulent and late delivery and also of banned goods making there way into India through the Internet based e commerce model. These should be regulated and not the system of supply and selling.
Internet based business to customer model is good for another reason. It is at the cutting edge of information driven business and add to the competitive capabilities of an economy. An Internet based model cuts waste and inventories and invests in technology for speedy delivery. This is turn ensures that even off line firms become leaner and more competitive. It is an industry that needs to be encouraged and not – as the proposed measures could – nipped in the bud.
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