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How much does half-a-kilo of Amul butter cost? One recent morning, this writer ventured to a local shop to fetch a packet. The MRP printed on the cover was Rs 235 (in Indian currency, which comes to Rs 376 in Nepali rupees). After ‘discount’, he ended up paying Rs 660 in his own currency. But why such a huge mark-up? Transport costs have rocketed during the pandemic, replied the muscular shopkeeper behind a blue mask, and it is unrealistic of shoppers to pay old prices for goods that have to travel some distance. Moreover, India’s inflation rate is inching towards seven percent, against the government target of under-four. 

The economic numbers out of India are scary. In the second quarter of 2020, the Indian economy shrank by an unprecedented 23.9 percent, easily faring the worst among mid- to large-size world economies. In the same period, Japan’s economy shrank by 9.9 percent while the US economy was down 9.1 percent. Oh, and the Chinese economy continued to grow, if at a modest 3.2 percent. Widespread layoffs loom in India and it could be years before the Indian economy regains current losses. 

Reliant on India for nearly 60 percent of both its imports and exports, and for the absorption of hundreds of thousands of its youths, this is a shocking development for Nepal. Given this overreliance, Nepal imports most trends of India’s macroeconomic indicators, and none of them looks good. The Indian rupee has rallied a bit against the dollar following the Indian central bank’s latest intervention. Yet the Indian rupee is expected to further lose its value to the dollar as the country struggles against the pandemic. As the Nepali rupee is pegged to the Indian currency, its value too will decline, making imports dearer still. 

As the fifth largest economy in the world tanks, the Indian government wants to divert public attention. It has now banned another 188 Chinese apps, including the uproariously popular PUBG. India’s anti-China pitch has gone up a notch too, following yet another skirmish with the PLA in Ladakh. Presiding over such shocking economic numbers, PM Narendra Modi cannot be seen as weak against China, not the least because of the latter’s ever-increasing strategic proximity with Pakistan. Nepal faces a double-whammy. To emerge from its economic abyss, Nepal will need all sorts of trade concessions from India, which is itself in a fiscal mess. Nor will the Modi government be all that enthusiastic to help Nepal and its ‘pro-China’ government.

Oli and co. are perhaps banking on their excellent relations with Beijing. (After all, China is the only major economy that is growing right now.) Yet China can do only so much for Nepal. The only two border crossings between the two countries are half-operational, and most of the Chinese goods are still coming to Nepal via Kolkata. Making matters worse, the Oli government seems incapable of balancing India and China, which was the case even when India-China relations were far better. Nepal makes precious little of its own. Foreign goods here may not be that scarce in the coming days. But they may have few buyers. Now I think of it, isn’t Amul butter a little bitter?

The Covid-19 lockdown has broken seamless global supply chains. Producers, distributors, retailers, and consumers are all trying to figure out new ways of delivering essential goods so that people can survive. American consumers alone spent $347.26 billion online with retailers in the second quarter of 2020, which is 30.1 percent up compared to the same period last year. E-commerce in Pakistan started in early 2000 but just three percent of population was buying online, which during the pandemic has increased by 10 percent. Covid-19 has had a significant impact on global e-commerce and sales are expected to reach $6.5 trillion by 2023, from an estimated $3.46 trillion in 2019. Consumers spent $2.93 trillion online in 2018. But in Nepal the government is arresting suppliers and delivery personnel of online businesses.

Africa’s booming e-commerce relies on one of the most digitally connected populations on the planet, with 400 million active internet users. There, consumers from remote areas rely on e-commerce to save time and money while purchasing goods. The ASEAN countries have already marched ahead in e-commerce with an emphasis on data connectivity, logistics to facilitate the free flow of goods and services, connectivity to facilitate cash flows, and seamless links between the physical and cyber space. Online sales account for 15 percent of retail sales in China and 14 percent globally. Nepal is clearly on the wrong track.

E-commerce is the future path. But it is full of regulatory complexities with issues related to data privacy, consumer protection, delivery, cyber security, market access regulation, and digital payment. Any country that wants to walk on this path should do some serious homework to address these challenges. Shutting down entire industry without such homework harms the economy and blocks the path of progress. Moreover, it has direct consequence on people’s lives in this time of pandemic. People have been locked in, with ever-increasing fear of contracting the dreaded virus. This could be the perfect time for an e-commerce boom.

E-commerce is not limited to serving domestic consumers. It is also being considered as a platform to better integrate regional trade. The World Bank, in its flagship report in December 2019, says e-commerce can boost a range of economic indicators across South Asia, from entrepreneurship and job growth, to higher gross domestic product (GDP), to overall productivity. The report’s lead economist and co-author Sanjay Kathuria claims that by unleashing its online trade potential South Asia can better integrate into international value chains, increase market access, and strengthen commercial links among countries across the region. These words echo louder in this pandemic as the brick-and-mortar businesses are being shaken to their core.

In Nepal, there are no laws to govern e-commerce while other countries have moved much further in regulating it. In 1996, a Model Law on E-commerce (MLEC) was adopted by United Nations Commission on International Trade and Law (UNCITRAL). The objective was to bring a uniform e-commerce international law and to increase electronic transactions to bring them on par with paper-based transactions. India, a UNCITRAL signatory, has established a new regulatory regime for e-commerce businesses by endorsing a slew of laws. As per the new Consumer Protection (E-commerce) Rules 2020 of Indian Federal Government, it is compulsory for e-retailers to display critical details of all their goods.

Nepal’s is a unique case as there is neither a roadmap to enhancing e-commerce nor a foundation for it. State bureaucracy and police forces are acting as if e-commerce is a criminal activity. But despite the state bullying, e-commerce businesses in Nepal are mushrooming. Hence there is an urgent need to establish an effective regulatory mechanism to strengthen the e-commerce legal framework. This should be done to save people’s time, money and, most importantly, their lives in these dangerous times.

The covid-19 lockdown has broken the seamless global supply chains. Producers, distributors, retailers, and consumers all have been trying to figure out new ways of delivering essential goods so that people can survive. American consumers alone spent $347.26 billion online with retailers, which is 30.1 percent up compared to the same period last year. E-commerce in Pakistan started in early 2000 but just three percent of population was buying online, which, now with the pandemic, has increased by 10 percent. Covid-19 has had a significant impact in e-commerce and sales are expected to reach $6.5 trillion by 2023, from an estimated $3.46 trillion in 2019. Consumers spent $2.93 trillion online in 2018. But in Nepal the government has arrested suppliers and delivery personnel.

Africa’s booming e-commerce relies on one of the most digitally connected populations on the planet, with 400 million active internet users. Consumers from remote areas also rely on e-commerce to save time and money in goods purchase. The ASEAN countries have already marched ahead in digital connectivity with an emphasis on data connectivity, logistics to facilitate the free flow of goods and services, connectivity to facilitate cash flows, and seamless links between the physical and cyber space. Online sales account for 15 percent of retail sales in China and 14 percent globally. Nepal is clearly on the wrong track.

E-commerce is the future path. But it is full of regulatory complexities with issues related to data privacy, consumer protection, delivery, cyber security, market access regulation, and digital payment. Any country that wants to walk on this path should start homework to address these regulatory challenges. Shutting down entire industry harms the economy and blocks the path of progress. Moreover, it has direct consequence on people’s lives in this time of pandemic. People have been locked in with the fear of the virus spreading. This could be the right time to let e-commerce boom.

E-commerce is not limited to serving domestic consumers. It is also being considered as a platform to better integrate regional trade. World Bank, in its flagship report in December 2019, says e-commerce can boost a range of economic indicators across South Asia, from entrepreneurship and job growth to higher gross domestic product (GDP), to overall productivity. The report’s lead economist and co-author Sanjay Kathuria claims that by unleashing its online trade potential South Asia can better integrate into international value chains, increase market access, and strengthen commercial links between countries across the sub-region. These words echo more in this pandemic as the brick-and-mortar old world is being shaken.

In Nepal, no law governs e-commerce while many other countries have moved much further in regulating it. In 1996, a Model Law on E-commerce (MLEC) was adopted by United Nations Commission on International Trade and Law (UNCITRAL), and later adopted by the assembly. The objective was to bring a uniform e-commerce international law and to bring electronic transactions at par with paper-based transactions. India, a UNCITRAL signatory, has established a new regulatory regime for e-commerce businesses by endorsing a slew of laws. As per the new Consumer Protection (E-commerce) Rules 2020 of Indian Federal Government, e-retailers must compulsorily display critical details of goods.

Nepal’s case is unique as there is neither a roadmap to enhancing e-commerce nor a foundation. State bureaucracy and police forces are acting as if e-commerce is a criminal activity. E-commerce businesses are mushrooming in Nepal up despite the state bullying. Hence, there is an urgent need for an effective regulatory mechanism to strengthen the legal infrastructure on e-commerce so that people’s time, money and most importantly lives of the self-isolating folks can be saved.

The covid-19 lockdown has broken the seamless global supply chains. Producers, distributors, retailers, and consumers all have been trying to figure out new ways of delivering essential goods so that people can survive. American consumers alone spent $347.26 billion online with retailers, which is 30.1 percent up compared to the same period last year. E-commerce in Pakistan started in early 2000 but just three percent of population was buying online, which, now with the pandemic, has increased by 10 percent. Covid-19 has had a significant impact in e-commerce and sales are expected to reach $6.5 trillion by 2023, from an estimated $3.46 trillion in 2019. Consumers spent $2.93 trillion online in 2018. But in Nepal the government has arrested suppliers and delivery personnel.

Africa’s booming e-commerce relies on one of the most digitally connected populations on the planet, with 400 million active internet users. Consumers from remote areas also rely on e-commerce to save time and money in goods purchase. The ASEAN countries have already marched ahead in digital connectivity with an emphasis on data connectivity, logistics to facilitate the free flow of goods and services, connectivity to facilitate cash flows, and seamless links between the physical and cyber space. Online sales account for 15 percent of retail sales in China and 14 percent globally. Nepal is clearly on the wrong track.

E-commerce is the future path. But it is full of regulatory complexities with issues related to data privacy, consumer protection, delivery, cyber security, market access regulation, and digital payment. Any country that wants to walk on this path should start homework to address these regulatory challenges. Shutting down entire industry harms the economy and blocks the path of progress. Moreover, it has direct consequence on people’s lives in this time of pandemic. People have been locked in with the fear of the virus spreading. This could be the right time to let e-commerce boom.

E-commerce is not limited to serving domestic consumers. It is also being considered as a platform to better integrate regional trade. World Bank, in its flagship report in December 2019, says e-commerce can boost a range of economic indicators across South Asia, from entrepreneurship and job growth to higher gross domestic product (GDP), to overall productivity. The report’s lead economist and co-author Sanjay Kathuria claims that by unleashing its online trade potential South Asia can better integrate into international value chains, increase market access, and strengthen commercial links between countries across the sub-region. These words echo more in this pandemic as the brick-and-mortar old world is being shaken.

In Nepal, no law governs e-commerce while many other countries have moved much further in regulating it. In 1996, a Model Law on E-commerce (MLEC) was adopted by United Nations Commission on International Trade and Law (UNCITRAL), and later adopted by the assembly. The objective was to bring a uniform e-commerce international law and to bring electronic transactions at par with paper-based transactions. India, a UNCITRAL signatory, has established a new regulatory regime for e-commerce businesses by endorsing a slew of laws. As per the new Consumer Protection (E-commerce) Rules 2020 of Indian Federal Government, e-retailers must compulsorily display critical details of goods.

Nepal’s case is unique as there is neither a roadmap to enhancing e-commerce nor a foundation. State bureaucracy and police forces are acting as if e-commerce is a criminal activity. E-commerce businesses are mushrooming in Nepal up despite the state bullying. Hence, there is an urgent need for an effective regulatory mechanism to strengthen the legal infrastructure on e-commerce so that people’s time, money and most importantly lives of the self-isolating folks can be saved.