The institutional framework
Industry and users alike are eagerly awaiting the passage of the much needed Information Technology Bill, and the Electronic Commerce Support Bill. The coverage of the IT Bill includes recognition of electronic records and signature, defining the liability of network service providers, electronic contracts, implications of digital signature recording and usage; duties and regulation of certification authorities, duties of subscribers, computer crime and data protection, and amendment of related laws so that new digital law may be immediately enforce without being bogged down by ancient acts preceding it.

The Electronic Commerce and Electronic Commerce Support Bills cover the area of international transactions. It aims to facilitate development of a secure regulatory framework by providing a legal infrastructure for governing electronic contracting, security and integrity of electronic transactions. The proposed legislation aims to provide a definition of all requisite term and addresses. Upon enactment, these would help provide a platform for enforcing internationally accepted norms and standards.

The Information Technology Bill and the Electronic Commerce Bills were supposed to be introduced for consideration in the budget session of Parliament in March 1999. They weren't. "We hope that these bills will be introduced in the winter session of Parliament in 1999," says Nasscom president Dewang Mehta.

"However, even if we have the regulatory framework, the telecom infrastructure needs to be spurred up. But in spite of this, the business community as well as users are upbeat about the tremendous potential offered for great value for money, efficiency and productivity," Mr. Mehta says.

The basic concern in this area relates to the need for Indian law to recognise digital evidence as valid; allowing electronic flow of monies; digital signature; encryption technologies; communication infrastructure; amendment of other, related Indian laws, and bringing down the overall cost of PC / Internet access in India.

Nasscom’s suggested inititative by government and industry
The fact that some e-commerce businesses have started in India, and more are emerging is encouraging. However, if India is to benefit by the e-commerce revolution, it cannot bank upon isolated cases of ingenuity and expect it to become a norm.

The main problem in India stems from a virtual lack of a regulatory framework and from poor infrastructure. Mr Mehta says, "The need of the hour is to have a world class, transparent and stable institutional framework in India and at the same time have global telecom infrastructure, so that e-commerce can proliferate faster in India."

Nasscom’s study indicates that India can expect to earn at least US $1 billion from software solutions and services exports in e-business / e-commerce applications in the year 2002. With companies planning to revive IT spending after the settlement of the Y2K problem, e-commerce solutions is likely to emerge as a major technological and business opportunity for Indian software houses.

The Nasscom study also indicates that India can aim to achieve Rs10,000 crore worth of annual e-business transactions in 2002. In short, e-commerce not only offers immense opportunities for existing businesses and new entrepreneurs but ample opportunity to the Indian software industry in the post-Y2K scenario, according to Mr Mehta.

To take advantage of these opportunities, we need to quickly implement Nasscom's 20-point programme, he says.