To further boost the online shopping market in India, the government plans to modify the IT Act, 2000 to remove legal obstruction in e-commerce transactions. Under the proposed Communications Convergence Bill, it wants to provide legal recognition for transactions by using electronic data interchange or electronic communication.
The government is looking to adopt the United Nations General Assembly’s (UNGA) recommended Model Law on Electronic Commerce (MLFC), “overcome obstacles arising from statutory provisions that may not be varied contractually by providing equal treatment to paper-based and electronic information.” Also, it aims to draft a set of globally acceptable guidelines to increase the legal predictability for e-commerce, as per an ET report.
Last month, Ministry of Textiles has announced for a deal with Flipkart to provide an online platform to handloom weavers for selling their products. Indian Finance minister, Arun Jaitley also unveiled a USD 1.6 billion fund to support startups in India to provide “equity through venture capital funds, quasi-equity, soft loans and other risk capital specially to encourage new startups by youth to be set up.”
A few months back, the Indian Software Product Industry Round Table (iSPIRT), an industry think tank was in talks with Ravi Shankar Prasad, India’s minister for information technology, telecom, and law, suggested for launching an USD 50 million fund for tech Startup along the lines of the Yozma fund in Israel.