The government of India discussing and is in process of developing the new regulations for the personal and non-personal data through the Draft National e-commerce policy. The new Draft policy highlights that the central government have laid down the principles regarding the usage of data for development of any of the industry where such norms are not in effect. With the new draft policy, the central government put an adequate safeguard that seeks to prevent misuse and access of data by the unauthorized persons.

  1. The new Draft National e-commerce policy states that, sharing of data for the industrial development will be encouraged and it will also provide for a sharing mechanism to regulate the data.
  2. Central Government will lay down the principles to use data for the purpose of developing any e-commerce, industry, consumer protection, economic security, national security and law enforcement.
  3. The Draft National e-commerce policy seeks to safeguards the misuse and access of data by any unauthorized persons.
  4. The new draft highlights that, central government recognises the importance of data and needs to use data initiating from India for Indian entities first.

E-commerce policy

The Draft National e-commerce policy was drafted and released by the DPIIT (Department for Promotion of Industry and Internal Trade). The e-Commerce Policy lays down several regulating strategies in order to address the issues regarding the data privacy, maintenance of level playing field and sector-Consumer protection.

Need for the policy

In India, Average internet usage of the users have increased over time. In 2014, average monthly data consumption in India stood at just 0.26 GB per person which had increased to 4GB by the year 2017. This increase in the internet usage means that more data is being generated. Thus, the need for greater regulation was felt by prioritizing the privacy and consumer protection which in turn benefit the domestic economy. The Draft National e-commerce policy was needed to ensure a competition in market in order to encourage entrepreneurship and innovation.

Draft on National e-commerce policy 2021 Draft on National e-commerce policy 2021