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Barriers to the growth of

E-commerce in India

Presented By:- Rajdeep Nirankari

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E-commerce can be defined as modern businessmethodology that addresses the needs of theorganization, merchants and consumers to cut costs whileimproving the quality of goods and services and speed ofservice delivery.

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E-commerce in India The cutting edge for business today is e-commerce.

Most people think e commerce means onlineshopping.

Providing a quick and convenient way ofexchanging goods and services both regionally andglobally, e-commerce has boomed. The travelindustry has benefited hugely through the growthsurge in e-commerce. According to IDC, onlinesales of airline tickets, car rentals, and hotelreservations make the travel industry one of thestrongest e-commerce markets in existence today.

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E-Commerce transactions in India

Year Total E

Commerce

Transactions

(Rs Crores

B2C (Rs

Crores)

B2B ( Rs

Crores)

1998-1999 131 12 119

1999-2000 450 50 400

2000-2001 1200 100 1100

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. It is expected that by 2003, more than 75 per cent ofrevenues of Internet business-to-consumer businesswould come from transactions

Analysts also believed that one of every four non-resident Indians (NRIs) would make some form ofpurchase from India-based web sites by 2003. And itactually happened.

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Is e-commerce happening in India? The Internet has created a new economic ecosystem,

the e-commerce marketplace, and it has become thevirtual main street of the world.

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Growth of E Commerce in India It is being stated that in the case of business-to-

business transactions, the Indian industry will reachonline penetration of 5 per cent by 2003.YearTotal e-commerce transactions B2C B2B

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Barriers to the growth of E Commerce in

IndiaSome of the barriers to e-commerce adoption in

India include the following:

Limited Internet access among customers andSMEs (current level of internet usage is low amongbusinesses and users)

Poor telecom and infrastructure for reliableconnectivity (Internet connectivity slow, accesscosts are high and connections are unreliable)

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Multiple gaps in the current legal and regulatoryframework

Multiple issues of trust and lack of payment gateways(privacy of personal and business data connected overthe Internet not assured; security andconfidentiality of data not in place)

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How can we make a Successful E Commerce

Transaction? To make a successful e-commerce transaction both

the payment and delivery services must be madeefficient.

There has been a rise in the number of companies'taking up e-commerce in the recent past. MajorIndian portal sites have also shifted towards e-commerce instead of depending on advertisingrevenue. Many sites are now selling a diverse rangeof products and services from flowers, greetingcards, and movie tickets to groceries, electronicgadgets, and computers.

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On the negative side there are many challenges facedby e-commerce sites in India. The relatively smallcredit card population and lack of uniform creditagencies create a variety of payment challengesunknown in the United States and Western Europe.