The government has extended the deadline for submitting stakeholder inputs on the new draft e-commerce rules to July 21. The initial timeline to receive suggestions was July 6.
The draft norms issued by the consumer affairs ministry late last month attempt to bar e-commerce entities from organising flash sale of goods or services offered on their platforms. They also proposed that the related parties and associated enterprises of e-commerce entities should not be enlisted as sellers for sale to consumers directly among a host of other amendments.
Experts said that the rules, if implemented, are likely to increase the compliance requirements of e-commerce companies and have the potential to stunt the business growth of the firms as the proposed amendments attempt to curb broad discounts, restrict the expansion of private labels, strategies companies often bank on to get more users.
The development comes two days after e-commerce companies met representatives of the government raising concerns over some of the proposed changes and sought extension of the timeline to submit comments.
E-commerce companies recorded significant growth amid the pandemic as more consumers took to online shopping. Global majors like Amazon and Walmart that owns a controlling stake in Flikpart have lined up investments worth billions of dollars to expand their business in the country.
Analysts at Goldman Sachs estimate Indian e-commerce to reach $112 billion in GMV (gross merchandise value) by FY25, growing at a 29% CAGR over FY20-25.