Notes
Outline
E-Commerce in India: Towards sustainable development
Jasjit S. Sawhney
CEO and Managing Director
Net 4India Limited
FICCI Auditorium | New Delhi
November 09, 2025
E-Commerce is about …
Why do we need E-Commerce?
Competition has been redefined …
Servicing globally using local competitiveness
Factor mobility has become more fluid
Logistics and synergies – enhancing internal economies
Branding, image building and personality
Redefined Equity
Lower transaction costs
Competitiveness in services
Better government
New business synergies
History of E-Commerce
First Wave (1995-2000)
E-retailers, market operators, auctioneers and content vendors
Cybermediaries attempting to connect two disparate offline worlds through e-platforms
Second Wave (mid 2000 -)
E-enterprises, Infotainment agencies, E-Governments, Online Educationists, Facility providers
Enterprises and Governments building broad-based platforms for everyone to share
The First Wave of E-commerce has died …

But the Second Wave has to survive

Need for a sustainable development of E-Commerce is imperative
Potential of      E-Commerce/

Select Case Studies
Global E-Commerce Big-Wigs
Growth of E-Commerce in India
Case #1: Convenience Management
Cathay Pacific learns from online travel agents
NotiFLY is the latest initiative in Cathay Pacific's e-business strategy - the service has progressed to sending flight updates to the airline's customers across 40 countries
CP has also pioneered other e-delivery services such as e-tickets
It launched the first comprehensive online check-in service aimed at cutting queues
Streamlining internal systems to cut costs and increase efficiency has become a main objective
Case #2: Collaborative Commerce
Building a Virtual Trading House
Descartes Systems, Ariba and AsiaDemand is building a virtual trading house for Chinese exporters
It would provide end-to-end trade procurement, finance, risk management and logistics services
The system would handle global visibility of order status, exception-based performance monitoring, landed cost calculation, delivery optimization and web based transport management
End result: higher clarity, lower cost,fewer risk and greater speed
Case #3: Digital all the Way
E-Commerce enablers – the new breed
Birth of  a new industry to support E-Commerce
Entire service originates and terminates over wire - Sourcing, processing, transfer, utilization and billing of the services is done over electronic platform
These enablers provide bandwidth, monitor networks, manage applications, secure transactions and register identities (domains/IKW), viz. Net4India
Globally E-commerce enabling companies account for ~ 20% of the total online revenue
Future* of E-Commerce will witness …
Introduction of ‘shop-bots’
Digitization of traditional products
Emergence of Commerce Service Providers (CSPs)
Implementation of Priority Service Pricing Protocol
E-Wallets and Digital Cash
Example: Trade in Digitizable Media
Forward Path
Planning for sustainable development
Have clear objectives
Know one’s strengths
Identify obstacles
Take action locally
Take action internationally
Clear objectives
E-Commerce is destined to become a way of global transaction
India cannot be left behind in this race
Government, Apex bodies, Enterprises and Institutions have to build a chain of trust
Congenial policy environment and optimal resource allocation must be ensured
Know one’s strength
Low per capita income is a major hindrance for B2C in India – but opportunities for B2B exists – large and diverse manufacturing and services sector
Postal and Railway Telephone Networks may supplement E-business hubs and fiber-optic network
Large pool of qualified technical resources should make India the fountainhead of E-commerce applications
Perfect location to become the hub of collaborative commerce between the Western Hemisphere and the NIEs of SE Asia
Identify obstacle
Lack of quality/ adequate fiber optic network
Large segment of the network cornered by state monopoly thereby distorting bandwidth pricing
High local levies and bank transaction charges
Low-acceptance of digital signature/ security-stamp for all judicial/ quasi judicial purposes
Select few Indian enterprises have till now graduated on to electronic platforms for internal processes and order servicing
Actions for the domestic arena
Need to upgrade domestic telecom infrastructure
Level-playing-field for bandwidth providers and telcos
Rationalization of tax structure to reduce the incidence of multiple taxation
Competitive transaction charges for online payment services
Fiscal incentives for enterprises going for e-commerce adoption
Removing popular misconception on insecurity in online transactions
International Policy for EC
The Doha Round of WTO has E-Commerce on its ministerial agenda
Govts. of the United States, Canada and Japan are aggressively pursuing the finalization of E-Commerce issue as a step closer to virtual abolition of customs tariff
International perspective of E-Commerce would through open serious issues of Intellectual Property rights presently governed by TRIPS (WTO) ad WIPO
Conclusion
E-Commerce is riding its second wave
Harnessing it properly would catapult India to the forefront of international trade
E-Commerce has all the promise to give a strong fillip to the country’s services sector GDP
Only harmonized approach of the industry, institutions and government can help achieve this goal
Thank You