E-Commerce Infrastructure and Economic Impacts in Developing Countries: Case of India

Abstract

This chapter presents a conceptual model that explains how e-commerce adoption in developing countries is affected by various infrastructure enablers and socio-economic variables. It describes the status of infrastructure enabler variables such as computer and Internet penetration, quality and speed of Internet connectivity, security infrastructure, online payment mechanisms and dispute resolution mechanisms in India and their impact on e-commerce adoption. Furthermore the chapter highlights the relationship between e-commerce adoption and various socio-economic variables such as prices, market reach, disposable income level, and cultural orientation of consumers. The chapter discusses the taxation of e-commerce, taking into account the complexity of the tax structure in India. A couple of mini-cases exemplify the utility of e-commerce in some practical applications. With this review of e-commerce adoption, stakeholders such as the government, the policy makers and industries will be able identify ways to nurture the positive effects and mitigate the negative effects to sustain the growth of e-commerce in many developing countries such as India.