The Indian e-commerce scenario is at the threshold of rapid change and development and the three entities that would benefit from the development of a robust e-commerce infrastructure are business, consumers at all levels and the government.

A key facilitator for e-commerce is the development of appropriate payment mechanisms and infrastructure for the same while crucial enabler for widespread adoption of e-commerce in the country is policy for online security, says a report of the Confederation of Indian Industry national committee on e-commerce.

According to the report, security is one of the major concerns of all participants in this field and immediate actions to create a secure online environment would go a long way in increasing the rapid adoptions of e-commerce.

The projected growth of e-commerce globally as per Forrester study in B2B for this year is $582 billion, $986 billion for 2002 and $1,551 billion in 2003 while in B2C it is $52 billion for this year, $76 billion for 2002 and $108 billion in 2003.

India is expected to benefit from this growth as e-commerce would make Indian products and services globally more competitive.

The Mckinsey study done in 2000 clearly throws light on projected growth in India in B2B for this year is Rs 32,000 million, Rs 13,2000 million for 2002 and Rs 420,000 million for 2003 while when it comes to B2C, the projected growth is Rs 3000 million for this year, Rs 18,000 for 2002 and Rs 80000 million for 2003.

The CII study lists some key industries that could derive benefits from extensive adoption of e-commerce as automotive and engineering industry, metals and chemicals, export driven industries (leather, gems and jewellery and textile, chemicals and engineering goods) and financial services industry.

The Indian industry will derive the benefit of more efficient marketplaces, improved business processes and industry-wide standardisation. The companies could use internet and e-commerce through a number of non-exclusive business structures by using private infrastructure (dedicated to shared) for such activities or by participating in open marketplaces.

The study suggests measures which companies could be encouraged to use e-commerce as making the cost of internet hardware, software and communication infrastructure more affordable to businesses, especially the small and medium enterprise sector, creating an environment of online security through appropriate infrastructure, polices and laws and having widespread online payment mechanisms for all possible business transactions that could be conducted online. The role of the government in leveraging the internet is three pronged.

The report recommends that the government should make appropriate changes in policies and regulations to encourage the adoption of the Internet and e-commerce by corporates and consumers.