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E-Commerce Policy: Centre To Regulate Cross-Border Flow Of Data

Restrictions on cross-border flows of data would not apply to data which is not collected in India, business-to-business (B2B) data sent to India as part of a commercial contract between a business entity located outside India and an Indian business entity.

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E-commerce
"India's data should be used for the country's development. Indian citizens and companies should get the economic benefits from the monetisation of data," said the draft policy released by the Commerce Ministry's Department for Promotion of Industry and Internal Trade (DPIIT). Pixabay

The Centre on Saturday released the draft e-commerce policy which proposes the regulation of cross-border flow of data collected by the sector players in India.

The draft policy is now in the public domain for comments and feedback from the stakeholders.

“India’s data should be used for the country’s development. Indian citizens and companies should get the economic benefits from the monetisation of data,” said the draft policy released by the Commerce Ministry’s Department for Promotion of Industry and Internal Trade (DPIIT).

All the data collected by the e-tailers in India and stored abroad should not be made available to other business entities outside the country, for any purpose, even with the customer consent, it said.

E-commerce
The data stored abroad “shall not be made available to a third party, for any purpose, even if the customer consents to it; all such data stored abroad shall not be made available to a foreign government, without the prior permission of Indian authorities,” as per the policy. Pixabay

The data stored abroad “shall not be made available to a third party, for any purpose, even if the customer consents to it; all such data stored abroad shall not be made available to a foreign government, without the prior permission of Indian authorities,” as per the policy.

However, the draft policy provides the government the right to access the data of Indian consumers stored abroad.

“A request from Indian authorities to have access to all such data stored abroad, shall be complied with immediately.”

The government will also prescribe penal consequences if an online retailer violates the rules.

Restrictions on cross-border flows of data would not apply to data which is not collected in India, business-to-business (B2B) data sent to India as part of a commercial contract between a business entity located outside India and an Indian business entity.

Software and cloud computing services involving technology-related data flows, which have no personal or community implications; and multi-national companies moving data across borders, which is largely internal to the company and its ecosystem would not have to follow the regulations.

As per the policy, domestic industrial standards need to be formulated and facilitated for smart devices and IoT (Internet of Things) devices to meet the goals of the country including, consumer protection, secured transactions, enhanced interoperability and ease-of-user interface.

E-commerce
Restrictions on cross-border flows of data would not apply to data which is not collected in India, business-to-business (B2B) data sent to India as part of a commercial contract between a business entity located outside India and an Indian business entity. Pixabay

National standard-setting organisations will be involved in this exercise along with other stakeholders, it said.

Regarding the taxation part, it said that the current practice of not imposing custom duties on electronic transmissions must be reviewed in the light of the changing digital economy and the increased role that additive manufacturing is expected to take.

The FDI policy in e-commerce has been developed in order to ensure that the marketplace provides a level playing field to all participants, it said.

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“A situation of capital dumping is to be strongly discouraged.”

The new FDI norms, which prohibit the e-tailers from selling products of companies in which they have stakes, came into effect on February 1 despite both Amazon and Walmart seeking a six-month delay in their implementation. (IANS)

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‘Shoppers’ Data with E-Commerce Giants Alibaba, Amazon Key to Reducing Inventories in Supply Chain

Alibaba group has fast emerged an e-commerce giant with monthly active mobile users increasing by 236 million over the past two years

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Shoppers, data, E-Commerce
Highlighting the crucial role of data in manufacturing, he noted that production was fast becoming consumer-centric from being product-centric. Pixabay

Shoppers’ data with e-commerce giants such as Alibaba, Amazon and Flipkart are fast proving to be the key to reducing inventories in the supply chain.

Hangzhou-headquartered Alibaba sees the new age production getting integrated with front-end data held by retailers.

Underscoring the huge significance of consumer data, Chen Xiao Ping, CEO of Intime Retail Group – an Alibaba unit which is converging online and offline retail – said: “(For us) each payment is a beginning of new payment.”

Highlighting the crucial role of data in manufacturing, he noted that production was fast becoming consumer-centric from being product-centric.

Shoppers, data, E-Commerce
Hangzhou-headquartered Alibaba sees the new age production getting integrated with front-end data held by retailers. Pixabay

Alibaba group has fast emerged an e-commerce giant with monthly active mobile users increasing by 236 million over the past two years till September 2019.

The Chinese retail behemoth sold $30.8 billion worth of merchandise during its mega one-day global shopping event in 2018.

Industry experts have forecast that it will break its previous year sales record this time. The mega shopping festival billed as Double 11 is set to kick off from midnight Sunday.

The bigger sales number means bigger data too which could be used to bring efficiency in the manufacturing sector.

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“The future of retail effectiveness and efficiency is predictive retail. And predictive retail will depend on second to second data,” said Bengaluru-based brand and retail expert Harish Bijoor.

With their fingers on the pulse of consumers, using big data and analytics, digital companies like Alibaba, Amazon and others are sitting on a huge data bank considered the new oil.

Alibaba uses enormous data it has on consumers, search terms, links shared and merchandises browsed etc.

Digitization helps in real time footfalls, order management, inventory numbers and potential areas of bottlenecks.

Shoppers, data, E-Commerce
Underscoring the huge significance of consumer data, Chen Xiao Ping, CEO of Intime Retail Group – an Alibaba unit which is converging online and offline retail – said: “(For us) each payment is a beginning of new payment.” Pixabay

“New retail driven by digitization is the going to be key growth engine for the industry,” Intime’s Chen said.

During this year’s Double 11, the 11th in a row, various digital platforms of Alibaba are offering 200,000 brands to over 700 million consumers.

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In China, e-commerce accounts for 18 per cent of total retail. (IANS)