​Know what’s pulling down India’s $1.8 trillion economy

Ever since the Narendra Modi government has come to power, it has announced a number of initiatives to attract global business leaders and entrepreneurs’ attention to the country. However, despite the efforts taken by the Centre, India, which is regarded as one of the fastest growing e-commerce market is Asia continues to be a tough place to do business.

According to the business-to-consumer (B2C) e-commerce readiness ranking of 130 countries released by the UN Conference on Trade and Development (UNCTAD), India was positioned at 83rd place. The highest e-commerce readiness is found in small European countries like Luxembourg, Norway and Finland. India’s next-door neighbours like Pakistan and Nepal ranked at 86th and 94th positions, respectively.

Among developing and emerging economies, the front-runners are all in East Asia, namely the Republic of Korea, Hong Kong (China) and Singapore (see table). Meanwhile, in terms of actual levels of online shopping, countries with large populations – such as Brazil, China and the Russian Federation – are performing better than predicted, suggesting that large markets facilitate e-commerce, the UNCTAD report revealed.

UNCTAD secretary-general Mukhisa Kituyi said, “As the digital economy expands and more business activities are affected, it becomes more important for Governments to consider policies that can help to harness e-commerce for sustainable development.”

The UNCTAD report notes that the scope for developing countries to participate in and benefit from e-commerce is expanding.
· First, connectivity has improved, with widespread uptake of mobile telephones, social media and rising levels of Internet use.
· Second, new e-commerce applications, platforms and payment solutions are making it easier to engage in online retail.
· Third, local e-tailers with online shopping services tailored to local demands are rapidly appearing in developing countries, including in least developed countries.

The global B2C e-commerce is valued at about $1.2 trillion.
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