COVER STORY
Negotiating trade rules in e-commerce to benefit the Indian industry As the pandemic continues, digtialisation will play a key role in inclusive growth and recovery of the Indian economy. India should be at the forefront of global negotiations on e-commerce, particularly the Joint Statement Initiative that now has 86 member countries. BY DR PRITAM BANNERJEE AND DR ARPITA MUKHERJEE
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ndia’s digital economy is projected to be US$1 trillion by 2025, constituting around 18-23% of the GDP. Its e-commerce market was valued at US$ 38.5 billion by volume in 2017 and is estimated to reach US$ 165.5 billion by 2025. NASSCOM data shows that the Indian technology-based industry has grown from US$ 191 billion in FY 2019-20 to US$ 194 billion in 2020-21. The sector employed around 4.47 million in FY 2020-21. India is the 3rd largest technology start-up hub in the world. In 2020-21, telecom, computer and information services accounted for nearly 50% of India’s services exports. Thus, India is at the centre-stage of the global
digital and e-commerce revolution, and needs to harness its strength through policy reforms and negotiations in global platforms. INTERNATIONAL ENGAGEMENT India has been a proponent of liberalising Mode 4 (temporary movement of high-skilled professionals) and Mode 1 (crossborder trade) in the WTO and in its trade agreements. While India continues to maintain this position, as it concludes trade agreements with key partners like the UAE and Australia and fast tracks negotiations with partners like the UK and the EU, it is yet to take an active role in wider international discussions on e-commerce.
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For example, India is not a part of the Joint Statement Initiative on e-commerce, which was launched by 71 WTO members at the 11th WTO Ministerial Conference in December 2017, and now has 86 members. India also did not sign on “sharing of data with a trust” during the Osaka Track of the Japanese G20 Presidency. The discussions in JSI are moving at a fast pace and participating countries have finalised the negotiating text on issues like e-signatures and authentication. By not participating, India may be at the receiving end, where it has missed the bus on contributing to the discussions. There can be some genuine concerns for India to take a
