MSME forum urges PM Modi to reconsider proposed e-commerce rules

India’s largest association of micro, small and medium enterprises (MSME), India SME Forum has written to Prime Minister Modi, requesting him to re-visit the growing compliance mechanism for e-commerce rules.

The Ministry of Consumer Affairs on 21st June 2021 introduced the draft proposal for e-commerce marketplaces. It had sought comments from relevant stakeholders and key e-commerce players to submit their inputs. Earlier the deadline was 6th July 2021. The ministry on 5th July 2021 extended the deadline to 21st July 2021.

India SME Forum’s request

India SME forum has more than 86,000 members from about 270 different industries. SME Forum is a non – governmental, non-political, non-trade union, not-for-profit organization. The Economic Times reported that the forum has pled the PM to save the MSME sector from the trickle-down impact of the proposed amendments. It says that the new amendment proposed in the Consumer Protection (e-commerce) Rules 2020 will be “counterproductive for the growth of the overall e-commerce sector and MSME is heavily dependent on the e-commerce sector”.

Almost 70% of the SME forum’s members are engaged in selling products online and the majority of them involved in B2B (Business-to-Business) dealings while 30% of them sell their products directly to consumers through various marketplaces. In addition to this, the Forum further pointed out that, “Many of the amendments may act as a roadblock to the sales prosperity unlocked by the e-commerce marketplaces for MSMEs in their present form.”

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Pukhraj Biala

I am an undergraduate student at Symbiosis Law school, NOIDA, pursuing B.A.LL.B. I am a problem solver who believes in reaching to a conclusion by weighing all the options and identifying the best possible one. I find Technology Laws quite fascinating and I continue to follow and learn the subject.

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