Data privacy issues and online fraud are becoming obstacles to e-commerce growth: Eco Survey

“The growth of e-commerce is limited by the insufficient skills required for online selling, such as cataloguing. Data privacy issues and rising online frauds have emerged as the biggest hurdles in the growth of e-commerce in India. It becomes imperative to educate users on how to use e-commerce platforms safely,” the study said.

The study said the e-commerce market in India has gained significant momentum over the last few years, driven by technological advancements, evolving modern business models coupled with government initiatives like Digital India Programme, UPI, One District – One Product (ODOP), Open Network for Digital Commerce (ONDC), New Foreign Trade Policy, relaxation in Foreign Direct Investment Limits and the Consumer Protection (E-Commerce) Amendment Rules, 2021.

It identified data privacy and cybersecurity as key issues for the digitalisation of services in the country and called for, among other things, the adoption of strong security measures, compliance with privacy regulations and innovation.

According to the study, “data protection and cybersecurity have become a critical issue with the increasing digitalization of services.”

The statement said the government is the initiator of the introduction of data protection regulations and cybersecurity rules that aim to protect consumer data and strengthen cybersecurity measures in the services sector.

“To increase trust in technology, it is essential to implement strong security measures, comply with privacy regulations and support innovation in security technologies,” the study noted.

The company said the future of e-commerce is based on improved user experience through artificial intelligence, seamless digital payment methods, innovations like UPI, and engineering data analytics for business operations and improvements.

The study finds that the Indian shopper ecosystem is evolving at a very rapid pace and business models will need to become innovative to meet the needs of a diverse customer base in terms of service expectations, price sensitivity and language requirements.

“Local language platforms are needed as the customer base expands into tier-2 and tier-3 cities. Emerging startups and innovative social media platforms provide an opportunity to test unique business models that can target specific demographics,” the study said. PTI PRS PRS BAL BAL BAL

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