Government Proposes New E-Commerce Regulations With Focus on Data Localisation

Advertisement
By Reuters | Updated: 25 February 2019 10:03 IST

India outlined a new draft policy for its burgeoning e-commerce sector on Saturday, focusing on data localisation, improved privacy safeguards and measures to combat the sale of counterfeit products.

The proposed overhaul, which would likely increase operating costs for the sector, comes two months after the country modified regulations governing foreign direct investment in e-commerce.

That forced retail giants Amazon.com and Walmart-owned Flipkart to restructure their Indian operations, and the latest reforms spell further upheaval.

Advertisement

"In the future, economic activity is likely to follow data," the widely expected draft policy document said. "It is hence vital that we retain control of data to ensure job creation within India".

Advertisement

The new rules call for the housing of more data centres and server farms locally, amid a broader push for data localisation by the South Asian nation, which is one of the world's fastest-growing online markets.

Reserve bank in 2018 forced payments providers such as Mastercard and Visa to store Indian users' data locally.

Advertisement

"Steps will be taken to develop capacity for data storage in India," the draft e-commerce rules said. "A period of three years would be given to allow industry to adjust to the data storage requirement."

Flipkart and Amazon said they were going through the draft rules and will share their inputs with the government.

Advertisement

The proposed rules also seek the creation of a "legal and technological framework" that can help impose restrictions on the cross-border flow of data generated by users, moves that may affect not just e-commerce platforms but also social media firms such as Alphabet's Google and rival Facebook.

India also plans to mandate all e-commerce firms to provide access to their data stored abroad whenever official requests are made. The rules, which come at a time New Delhi is working on a broader data privacy law, also forbid companies from sharing data stored abroad with other businesses even with user consent.

Other proposals include mandating all e-commerce websites or apps operating in India to have a locally registered business entity, and increasing liability of e-commerce players to ensure products sold on their platforms are not counterfeit or pirated.

"Lot of issues covered, bold decisions," the All India Online Vendors Association, which represents more than 3,500 online sellers, said in a tweet.

New Delhi has invited comments on the proposed rules by March 9, after which the rules are likely to be formalised.

© Thomson Reuters 2019

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: E-Commerce, Amazon, Flipkart
Advertisement

Related Stories

Popular Mobile Brands
  1. Apple to Reportedly Launch Low-Cost MacBook in 'Playful Colors' in March
  2. Samsung Galaxy S26+ Reportedly Listed for Sale Online Ahead of Launch
  3. Oppo K14x 5G With 6,500mAh Battery Goes on Sale in India: See Price, Offers
  4. Lava Bold N2 Will Be Launched in India on This Date: See Expected Specs
  5. AI Impact Summit: From Registration to Schedule, All You Need to Know
  6. Tecno Spark 50 4G Launch Timeline, Design, Colourways, Key Features Leaked
  7. Realme P4 Lite India Launch Date, Design, Colourways, Key Features Revealed
  1. Apple Tipped to Adopt Samsung's Privacy Display Technology for MacBook Models by 2029
  2. Oppo Find X10 Series Tipped to Launch in H2 2026 With Built-In Magnets for Wireless Charging
  3. AMD and TCS to Co-Develop Helios AI Data Centre Architecture, Deliver 200MW Data Centre Blueprint
  4. Tecno Spark 50 4G Tipped to Launch Globally Soon; Design, Colourways, Key Features Leaked
  5. Lava Bold N2 India Launch Date Revealed; Will Be Exclusively Available via Amazon
  6. Government Green Lights Rs. 10,000 Crore Fund of Funds 2.0 Under the Startup India Mission
  7. Samsung’s 'Wide' Galaxy Z Fold Design Revealed via Leaked One UI 9 Animations
  8. Realme P4 Lite India Launch Date Announced; Design, Colour Options, Key Features Revealed
  9. Kingdom Come: Deliverance's Free Next-Gen Update on PS5, Xbox Series S/X Is Now Out
  10. Vivo X300 FE Reportedly Bags IMDA and TUV Certifications; Charging Specifications Revealed Ahead of Launch
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.