Mukesh Ambani's Reliance Industries could play a significant role in India's e-commerce space.
There are huge chances that instead of Walmart's Flipkart, Mukesh Ambani's Reliance Industries could become Amazon's top rival in India. If the draft e-commerce policy becomes the law, then Reliance Industries could emerge as a king of e-commerce sector. Currently, foreign-funded firms are not allowed to hold e-commerce inventory in India, which already is a massive disadvantage for firms like Amazon.
Experts were hoping that the new policy would provide some rebate from the present rules, but the new draft came with a stricter set of rules, those if implemented could even cause trouble for Flipkart and Amazon in announcing their huge discount offers.
However, Reliance would face no such issues, as a report in Bloomberg stated, Mukesh Ambani’s Reliance Retail Ltd would be free to control and improve their supply chains while building a fearsome online presence in partnership with his mobile operator, Reliance Jio Infocomm Ltd.
Coming back to the draft e-commerce policy, it could spell more trouble for foreign players as it wants online retailers such as Amazon.com, search engines like Google and social media platforms to locally store data generated by users in India, with the government having access to such data for national security and public policy objective.
According to the 19-page draft policy, "A level playing field needs to be provided to domestic players by ensuring that foreign websites involved in e-commerce transactions from India also follow the same rules, including procedures for payment systems, such as two-factor authentication, as in case of domestic companies".
The draft policy recommends strengthening regulatory vigilance for payments system, curbing discounts in online retail and a single legislation to encompass all aspects of e-commerce with a single regulator to govern the industry.
The Bloomberg report, citing China's example also said that similar laws already exist there which led Amazon to sold its Chinese servers and some other cloud assets to a local partner to comply with Beijing’s local storage rules. Alphabet is also looking for a local partner to bring its Google Drive and Google Docs to the country.
The report stated that if the new e-commerce rules would be implemented then Mukesh Ambani would have a home-turf advantage in his kitty. Citing report published in an Indian tech portal, Bloomberg claimed that executives from Jio and Reliance Industries Ltd., the group flagship, helped shape the “India First” doctrine of the new e-commerce rules.
Concluding its report, it said that given scenario if the new draft e-commerce policy becomes a law, Mukesh Ambani has potential to beat world's richest man, Jeff Bezos in registering the largest share of digital market under RIL's name.
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 "Not Flipkart, Mukesh Ambani's Reliance can become Amazon's biggest rival in India: Here's why")
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