Get All Access for $5/mo

How The Indian Government is Toughening up on the E-commerce Sector With the Draft National Policy Framework on e-commerce, the Indian government is looking at creating a single regulator for the e-commerce industry.

By Sanchita Dash

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.


The frontrunner of the Indian startup industry has been the e-commerce segment. The marketplace model has been a favourite of entrepreneurs which only explains the boom of the sector. From the introduction of cash-on-delivery to opening up the possibility of returns for goods that don't meet expectations, the Indian e-commerce market is a booming one.

According to a report by India Brand Equity Foundation, the Indian e-commerce market is expected to grow to US$ 200 billion by 2026 from US$ 38.5 billion as of 2017. The report also states that online retail sales in India are expected to grow by 31 per cent to touch US$ 32.70 billion, led by Flipkart, Amazon India and Paytm Mall.

The acquisition of Flipkart by Walmart only reinstates the fact that the Indian e-commerce industry has the world's attention.

However, there have also been hiccups of late. Recently, the government had said that the cash-on-delivery option by e-retailers is not authorized. And now with the Draft National Policy Framework on e-commerce, the Indian government is looking at creating a single regulator for the e-commerce industry.

Here's looking at what the government expects to do in the e-commerce segment.

Setting up a Single Regulator

According to reports, the government is looking at establishing a single regulator for e-commerce in the country. This regulatory body will be looking at all the issues in the sector. This will keep the sector regulated and help to curb scams in the sector.

Data Storage

The Indian government has been looking at data security and is now considering asking e-commerce and social media firms to exclusively store customer data locally. While this could be in tandem with Indian e-commerce companies, this could also hamper the growth of global e-retail giants like Amazon and Walmart. For these e-commerce giants, the Indian userbase is one of the highest all over the world. The government could give these giants time before localization of data becomes mandatory for all.

Mergers to be Under Scrutiny

With Walmart's acquisition of Flipkart, it seems the Indian government has woken up to the fact of regulating mergers as well. The acquisition of Flipkart too saw a lot of protesters protesting against the greater presence of Walmart in India which could hinder the growth of smaller retailers in the country. According to reports, in the Draft National Policy Framework the government is also looking at tightening the scrutiny of mergers in the e-commerce sector so that small deals which could potentially distort competition are compulsorily examined by the country's anti-trust regulator.


The government has been looking at payment options being offered by e-commerce companies, The introduction of UPI too meant that the government is taking the digitization of payments seriously. Now, according to reports, the centre could soon ask e-retailers to include the home-grown card network Rupay as one of the payment options.

Sanchita Dash

Entrepreneur Staff

Former Senior Correspondent, Entrepreneur India

In the business of news for 5 years now. Making my way across India thanks to my career. A media graduate from Symbiosis, Pune, I have earlier worked with Deccan Chronicle (South India's leading English daily), T-Hub (India's largest incubator) and Anthill Ventures (a speed-scaling platform). 

Stories, movies and PJs are my thing. 

If you hear 'The Office' opening score randomly, don't worry it's just my phone ringing. 


News and Trends

Tata Punch And Nexon Score Perfect 5 In First BNCAP EV Crash Test

Under this system, vehicles will receive between one and five stars, indicating their safety in a collision. Known as BNCAP, this voluntary rating system was implemented on October 1, 2023.

News and Trends

RENEE Cosmetics Raises INR 100 Cr in Series B Round

Through all rounds to date, the Ahmedabad-based beauty brand has raised about USD 45 million in total.

Starting a Business

I Left the Corporate World to Start a Chicken Coop Business — Here Are 3 Valuable Lessons I Learned Along the Way

Board meetings were traded for barnyards as a thriving new venture hatched.

Business News

Apple Reportedly Isn't Paying OpenAI to Use ChatGPT in iPhones

The next big iPhone update brings ChatGPT directly to Apple devices.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.


ChatGPT is Becoming More Human-Like. Here's How The Tool is Getting Smarter at Replicating Your Voice, Brand and Personality.

AI can be instrumental in building your brand and boosting awareness, but the right approach is critical. A custom GPT delivers tailored collateral based on your ethos, personality and unique positioning factors.