The proposed revamp, which would likely increase operating costs for the sector, comes after the country modified regulations governing Foreign Direct Investment in ecommerce.
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. The proposed rules also seek the creation of a framework that can help impose restrictions on the cross-border flow of data generated by users, moves that may affect not just ecommerce platforms but also social media companies such as Google and Facebook.
Other proposals include mandating all ecommerce websites or apps operating in India to have a locally registered business entity, and increasing liability of ecommerce players to ensure products sold on their platforms are not counterfeit or pirated. New Delhi has invited comments on the proposed rules by 9 March 2019, after which the rules are likely to be formalised.
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