85 THE ROLE OF E-COMMERCE INDUSTRY IN SUSTAINABLE DEVELOPMENT IN INDIA:
AN ANALYTICAL REVIEW Dr. Paritosh Awasthi
Principal, Shri Vaishnav College of Commerce, Indore (M.P.)
Abstract - E-commerce industry is one of the strongest pillar of Indian Economy. As per the data of 2017, its contribution in Indian economy was recorded US Dollar 38.5 billion and by 2027, Indian market is expected to reach US Dollar 200 billion. Young population of India, rising internet usage, various promotional programs of GOI such as Digital India, Make in India etc. and flexible government policies towards FDI in this area are the main factors for the rapid growth of E-commerce industry in India.
The purpose of the study is to analyze the contribution of electronic commerce industry in sustainable development of India and to fulfil this object, past ten years literature is been used for the review.Through the analytical literature review (ALR), it is found that Indian market has the tremendous potential for growth in this area but some obstacles are also coherent with it such as multi linguistic, unfamiliarity with digital system, market inefficiency, nature of cash on delivery etc. In the studies, it is suggested that joint efforts of corporate sectors and GOI is required to achieve the goal of sustainable development in India.
Keywords- E-commerce, Sustainable Development, GOI, Corporate Sectors.
1 INTRODUCTION
Over the past few years, the methodology of buying and selling of goods and services have been transformed by the Internet. E-commerce is modifying the shopping practices of Indian customers and it also provides multiple benefits to the customers in form of easy availability of goods at lower cost, wider range and saves time.Every day millions of transactions are conducted through the web, all of which fall under the E- Commerce.E-commerce operates in all four of the major market segments i.e., business to business (B2B), business to consumer (B2C), consumer to consumer (C2C) and consumer to business (C2B).
The emergent use of the Internet, tablet devices, and smart phones haveexpanded the market of ecommerce and level of confidence of consumers in India. With the exponential growth of social media in recent years, the conversation between businesses and consumers hasbecome more appealing and convenient, making it easier for transactional exchanges to happen online.
Online sellers continue to try to create better content and a realistic shopping experience with technologies to attract more and more customers. With the easy connectivity through mobile phones, commerce gaining speed, more users are purchasing from the palm of their hand (Miva-2011).
In other side, many ecommerce companies in India are facing the problems of poor infrastructure, unclear tax structure policies and lack of awareness about the ecommerce companies. Many ecommerce companies have developed their own ingenious ways to attract the Indian consumers like Cash on Delivery (COD), EMI option etc. Hence, this study intends to review earlier studies on ecommerce industry inIndian market to understand the tremendous potential for growth in this area.
1.1 Objectives of the Paper-
To review earlier studies on the role of e-commerce industry in sustainable development in India.
To summarize recent studies on the above subject.
2 REVIEW OF LITERATURE
The following section reviews the prior literatures on role of e-commerce in sustainable development in India and various challenges faced by e-commerce industry with the reasons and the remedial steps for the same.
Olah J. & et al. (2018), Gypsy N. &
Debbarma S.(2014) and & Dobrota, M., et al. (2012) explained that the revolution of internet has enhanced the environmental and socioeconomic sustainability of e- commerce. Olah J. & et al. (2018)
86 furtherfound from the analysis of the two
case studies of Kenya and Jordon that e- commerce companies are equally responsible for the environmental and social growth of the country.
Bagale G.S. (2016) & Faisal, I.
(2012) mentioned the causes of effectiveness and acceptance of e- commerce such as lower marketing and distributing cost, supportive for businesses, easy accessibility etc. in their studies.
Khan A. G. (2016) & Ray J.S.
(2011) evaluated that saving of time, reduction of transaction cost, quick information of the product, quick & easy access, product at lower price etc. are the Key benefits of the ecommerce which makes the convenient life of the customers. It also improves the communication skills and decision power of the customers.
Agrawal S. (2015) discussed about the tremendous available opportunities in the field of ecommerce. She found that
“Digital India mission” will also contribute in the acceleration of the e-commerce sector. Reasons behind the acceptance of ecommerce in India are the demographics changes, changing in life styles and exposure to international brands, increased number of female buyers etc.
Big international ecommerce companies will also open new gateways for the improvement and growth.
Raskar B. J. & Jadhav A.D. (2018) revealed several challenges for ecommerce in his study such as infrastructural problem, privacy and security problem, Issues related to payment and tax matters, shipping challenges etc.
Ali M. & Alam F. (2020), Rajasekar, S. & Sweta, A., (2016) and Gypsy N. & Debbarma S.(2014) Concluded about the challenges and found that due to the lack of education, Poor concept of online marketing, certain limitations of Internet coverage arena and getting issue for online transactions, online security and inconvenient Tax structure, communication is haphazard over the country, lack of trustable business and enterprise and lack of experience of meeting directly with merchant and customer, fear, touch and feel’s factor, logistics and shipping issues, poor knowledge and awareness etc. are
the major issues. They also suggest few points for improvement such as ecommerce companies should work on the cyber security, product reliability, price policy, product quality, choice and preference of the customers, increase business credibility through online branding, customer satisfaction etc. so the ecommerce will become the best option for everyone.
3 CONCLUSION
E-commerce is used as a business strategy tool and it plays a vital role in economic growth of a country. This process is connect not only the people but to the world on electronic platform. On the basis of above studies it is found that sources of e-commerce should be used more securely in future to reduce the various online frauds. E-commerce is an incredible opportunity for India to facilitate 70 million medium and small Indian businesses to become the substratum of India's digital economy.Collaboration among Government and big e-commerce companies such as amazon, flipkart, snapdeal etc. are essential and it is the need of the time.
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