New policy to aim to bring e-tailers, brick-and-mortar businesses closer

  1. The Government is considering to bring a national policy on retail trade.
  2. This policy is being brought as e-commerce firms are looking to expand into new segments such as groceries alongside penetrate into India’s geography.This will widen the conflict between online retailers and traditional ones.
  3. The retail policy is expected to cover different segments and could offer a level playing field to all players in the ecosystem while helping the smaller retailers modernise to meet the growing demand.
  4. The policy is also expected to lay down an overarching framework for the sector to cover various segments such as physical retail,direct selling, hypermarkets and e-commerce.
  5. The policy will focus on spelling out regulations, improving access to funds and compliance costs while improving the enabling environment for the retail sector as a whole.
  6. Further,the e-commerce firms and traditional retail traders have been at loggerheads with the latter accusing online retailers of distorting the level-playing field by offering deep discounts on back of foreign funding.
  7. However, e-commerce players have pointed out that currently online retail occupies less than 5% of the total retail pie in India.

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