This document summarizes a presentation on electronic commerce in India. It outlines the growth of e-commerce and internet usage in India. It discusses the key issues facing e-commerce adoption including infrastructure, skills gaps, and awareness. It also outlines several government initiatives to promote e-commerce such as establishing standards, pilot projects, and education programs. The conclusion emphasizes the important role of education in developing countries and the need for joint public-private efforts to promote e-commerce.

1. 1
Presentation by
T. A. Khan
Senior Technical Director, NIC
Ministry of Commerce & Industry, India
and
UN/CEFACT Rapporteur for Asia
takhan@ub.nic.in
Electronic Commerce
Education and Information

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Outline
E-Commerce in India
Human Skills Required for EC
Country Issues
Government Initiatives
Conclusion

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E-Commerce in India
INDIA - GROWTH OF E-COMMERCE
Year Total E-Commerce Transactions
(in Million $)
1998-99 31.138
1999-00 103.848
2000-01* 489.154
2001-02* 1595.066
2002-03* 4253.509
2003-04* 8507.018
* Projections (Ref: Nasscom-McKinsey study)

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E-Commerce in India
INDIA - GROWTH OF INTERNET
Date Internet Connections Users
(in million) (in Million)
Aug 15,1995 0.002 0.01
Mar 31,1996 0.050 0.25
Mar 31,1997 0.090 0.45
Mar 31,1998 0.140 0.70
Mar 31,1999 0.280 1.40
Mar 31, 2000 0.900 2.80
Dec 31, 2000 1.800 5.50
(Ref: Nasscom-McKinsey study)

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E-Commerce in India
 Population 1012 Million
 As of December 2000, there was a PC base of
5 million PCs.
 More than 120 private ISP's operational by
March 31, 2001
 More than 86 percent of top 100 corporate
(who responded to the survey conducted in
January 2001) have endorsed the Internet
and electronic commerce as being an integral
part of their corporate strategic framework
for next year

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E-Commerce in India
 The Internet and E-Commerce industry employs
approximately 82000 people( ref: Industry
association study 1999) which include
Web Developer, Web Designers, System
Analysts, ISP Infrastructure Providers,
Marketing Staff, E-Software professionals etc.,
 It is projected that by March 2003, the Internet
and E-Commerce industry would employ over
3,00,000 people.

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E-Commerce in India
As per NASSCOM’s HRD survey,
there were 3,40,000 software
professionals employed in the
country as on 31st March 2000
By 2008 we would require 2.2 Million
IT professionals – 1.1 Million in the hard
core IT sector and another 1.1 Million
for the IT enabled services.

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E-Commerce in India
Supply of manpower
There are 1270 colleges (776 colleges awarding
degrees in Engineering and Technology and
494 colleges awarding MCA as on 04.05.2000)
in the country with a total intake of
2,05,153(1999-2000).
1032 (81.25%) of them offer IT courses with an
intake of 66,214 (32.17%).

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Country Issues
 Telecommunication Infrastructure
 Bandwidth
 PC penetration/Internet penetration
 Legal Framework
 PKI
 Electronic delivery of public services
 Payment gateways
 Education and awareness

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Human skills required for EC
 Developing Electronic Commerce
solutions successfully across the
Organisation means building reliable,
scalable systems for
 security,
 E-Commerce payments,
 supply-chain management,
 sales force, data warehousing, customer
relations
 integrating all of this with existing back-end
operations.

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Human skills required for EC
It's not just about E-commerce;
It's about redefining business models,
Reinventing business processes,
Changing corporate cultures, and
Raising relationships with customers and
suppliers to unprecedented levels of
intimacy

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Human skills required for EC
Internet-enabled Electronic Commerce:
 Web site development
 Web Server technologies
 Security
 Integration with existing applications and
processes

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Human skills required for EC
Information Technology for Integrated
Electronic Commerce:
LAN/WAN infrastructure planning
implementation Internet/Intranet Electronic
Commerce solutions

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Human skills required for EC
Security:
 Security issues for buying and selling
over the Internet and approaches for
business

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Education and Awareness on
EC
 Private Institutes
 Online education through web
 Government Institutes/Colleges
 Conferences/Exhibitions

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Indian Government constituted National Task
Force on IT & SD
Institutional setup
 EC Council of India
India EDIFACT Committee
Technical Assessment Group
HRD Group constituted
Government Initiatives

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Message Development Groups for
 Customs
 Ports
 Airports
 Finance
 Private sector
EDIFACT standards declared as national
standards
Government Initiatives

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On going awareness programs
Legal backup to EC/EDI documents
Process re-engineering committees
Sectoral implementation committees
Establishment of Article Numbering & Bar
Coding Institution
Government Initiatives

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Indian Institute of Foreign Trade(IIFT),
Federation of Indian Export Organisation
(FIEO), All India Management Association
(AIMA), National Informatics Centre (NIC)
nominated for creating education and
awareness
Courses for various level of management were
structured
Government Initiatives

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Financial assistance given for setting up
Electronic Commerce laboratories
AICTE recommended to include Electronic
Commerce as an essential part of every
technical and management program
Government Initiatives

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Conference and Exhibition on EC is organized
on regular basis
Session on EC for CEO’s of top Indian
companies is organized during every
conference
Government Initiatives

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Launch of Auto EC Pilot project
Pilot EC projects for healthcare and other
sectors
Government Initiatives

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Internet based EC
Web based application
Internetworking of VANs
Government Initiatives

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Industry leaders in sectors like
Pharmaceuticals, Chemicals, Gems &
Jewelry, textiles, Trading etc., are
encouraged to start pilot EC projects.
Ministry of Commerce to provide
support for all pilot EC projects.
Government Initiatives

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All Trade bodies like CII,
ASSOCHAM, FICCI etc.., encouraged
to start Awareness and Education
programs on EC/EDI for their
members for which services of AIMA,
NIC, IIFT and FIEO could be availed.
Government Initiatives

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Education and information on EC has a very
vital role to play specially in the developing
countries where most of the players are in
SME sector. Two main challenges before us
are to provide the required numbers and
improve quality to raise productivity and
moving up the value chain.
Conclusions

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Governments jointly with private sector need to
take adequate measures for the promotion and
propagation of EC to make trade and industry
competitive in the global trade.
Conclusions

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