eCommerce Growth Enablers: NASSCOM’s five point recommendations on driving eCommerce uptake

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China’s ecommerce market is projected at $1.1T by 2020, vs India’s at $75…100B. How do we accelerate growth? India expects to see online sales expand five-fold by 2020. But in that year China’s ecommerce revenues are projected to be $1.1 trillion, more than ten-fold higher than India’s (source: Forrester, which estimates $75B ecommerce revenues for India 2020; others incl. PwC, Morgan Stanley estimate ~ $100B).

 

India faces major challenges and impediments to faster growth, especially

  • Under-developed logistics
  • Poor last-mile connectivity
  • Cash economy
  • Low smartphone/broadband penetration.
  • Gaps in consumer confidence in ecommerce/epayments

 

Broad Nasscom recommendations:

  • Align regulations and enforcement to overall govt policy objectives (Digital India) and overall development strategy (technology-enabled development)
  • Given its economic and governance benefits, ecommerce transactions should be incentivized, and in any case not be disadvantaged as compared to physical/offline transactions
  • Focus on consumer and citizen, as well as SMEs, MSMEs and startups who are the foundation and future of the economy and industry.
  • Regulatory environment aimed at encouraging and facilitating the use of digital and other technology to empower citizens, consumers, businesses.

 

Read the five specific recommendations in the document.

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