E-commerce in India is flourishing. However, many e-commerce players have entered into the arena without much planning, preparation and keeping in mind the legal compliance aspect in mind. Naturally, many of the e-commerce ventures started in the year 2011 have closed down.
Further, consolidation of e-commerce industry of India is also in progress. Many small e-commerce projects have been acquired by larger e-commerce players to consolidate e-commerce segment for their respective industry.
FDI in wholesale trading and e-commerce sectors of India under consolidated FDI policy of India 2012 was given a major boost by Indian government. Further, the Parliament of India recently approved FDI in e-commerce sector of India. Thus, it is high time for structuring of investments in e-commerce businesses in India.
The most important aspects that both national and international e-commerce players must keep in mind is that business structuring of e-commerce in India must be done in a techno legal manner.
The legal formalities required for starting e-commerce business in India are now well established. However, legal issues in e-commerce in India are still not clear to many national and international e-commerce business houses and entrepreneurs. For instance, the legal requirements to start an e-commerce website In India are covered by many legislations including information technology act, 2000 (IT Act 2000). However, both national and international e-commerce players are not complying with legal issues of online shopping in India.
One segment that has tremendous potential in e-commerce industry pertains to educational and books publication sector. Traditional and print form books have dominated market share for long. However, there is a gradual shift towards e-books publication, distribution and e-commerce.
Asian countries, especially India, can offer great commercial benefits to book publishers if they explore e-books publication and distribution in India. However, while doing so these e-book publishers must keep in mind the techno legal requirements that most e-commerce players in India are presently ignoring.
Perry4Law and Perry4Law’s Techno Legal Base (PTLB) suggest that e-commerce business houses must keep in mind the specified requirements of cyber due diligence for Indian companies. Many companies have already found themselves on the wrong side of Indian laws for violating the same. There is no sense in ignoring Indian laws by e-books publishers and distributors when they wish to trap the Indian e-commerce market.