E-Commerce Services in India: Prospects and Problems

Abstract

Electronic commerce (e-commerce) as part of the information technology revolution became widely used in the world trade in general and Indian economy in particular. With advancements in technology, there have been changes in the methodology for business transactions. India, being a rapid adaptor of technology is apace with the current scenario of electronic data exchanges and has taken to e-commerce. E-commerce stands for electronic commerce and pertains to trading in goods and services through the electronic medium. India is showing tremendous growth in the Ecommerce. The low cost of the PC and the growing use of the Internet is one of reasons for that. There is a growing awareness among the business community in India about the opportunities offered by e-commerce. Textile Industry is second largest industry in the country contributing 14% to GDP. E-commerce and electronic applications in automation has brought in tremendous growth in India. E-commerce is connecting rural India for the business hence develop village economy. The future does look very bright for ecommerce in India. India is showing tremendous growth in the E-business. India has an internet user base of over 100 million users. The penetration of e-business is low compared to markets like the US and the UK but is growing at a much faster rate with a large number of new entrants. India is yet to witness a breakthrough E-commerce success story particularly in online retail. E-commerce creates new opportunities for business; it also creates new opportunities for education and academics line. It raises key challenges that are being faced by consumers relating to e-commerce viz., Ethical issues, Perceptions of risk in e-service encounters, challenges for e-business education and legal system. The new Innovative Technologies in Electronic and IT applications is backbone of the Industry development. This can happen only when E-commerce supplements and compliments development of the Engineering Industry and large-scale Quality manufacturing happens in India. India needs to promote E-commerce business to develop rural India by developing effective communication to map value of the goods produced and make available goods and services at low cost to the consumers. Textile garment Industry has got tremendous support by E-commerce by online web portal but consumer needs to be taken into confidence by educational program in rural India.