External Sector Updates- 1 | Economy for UPSC 2024 (Pre & Mains) PDF Download

 Page 1


E C O N O M Y
E X T E R N A L S E C T O R
UPDATES
PART - 1
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E C O N O M Y
E X T E R N A L S E C T O R
UPDATES
PART - 1
E-COMMERCE
E-commerce means buying and selling of goods and services including digital products over digital & 
electronic network.
Inventory based model of e-commerce
An e-commerce activity where inventory of goods and services is owned by e-commerce entity and is 
sold to the consumers directly. 
FDI is not permitted in inventory based model of e-commerce.
Marketplace based model of e-commerce
Means providing of an information technology platform by an e-commerce entity on a digital & 
electronic network to act as a facilitator between buyer and seller.
100% FDI under automatic route is permitted in marketplace model of e-commerce.
Inventory of a vendor will be deemed to be controlled by e-commerce marketplace entity if more 
than 25% of purchases of such vendor are from the marketplace entity or its group companies. 
Page 3


E C O N O M Y
E X T E R N A L S E C T O R
UPDATES
PART - 1
E-COMMERCE
E-commerce means buying and selling of goods and services including digital products over digital & 
electronic network.
Inventory based model of e-commerce
An e-commerce activity where inventory of goods and services is owned by e-commerce entity and is 
sold to the consumers directly. 
FDI is not permitted in inventory based model of e-commerce.
Marketplace based model of e-commerce
Means providing of an information technology platform by an e-commerce entity on a digital & 
electronic network to act as a facilitator between buyer and seller.
100% FDI under automatic route is permitted in marketplace model of e-commerce.
Inventory of a vendor will be deemed to be controlled by e-commerce marketplace entity if more 
than 25% of purchases of such vendor are from the marketplace entity or its group companies. 
STARTUP
1. Upto a period of seven years from the date of incorporation/registration, if it is incorporated as 
a private limited company or registered as a partnership firm or a limited liability partnership 
(under the Limited Liability Partnership Act, 2008) in India. 
2. In the case of Startups in the biotechnology sector, the period shall be upto ten years from the 
date of its incorporation and registration.
3. T urnover of the entity for any of the financial years since incorporation/ registration has not 
exceeded Rs. 25 crore
4. Entity is working towards innovation, development or improvement of products or processes 
or services, or if it is a scalable business model with a high potential of employment generation 
or wealth creation.
An entity formed by splitting up or reconstruction of an existing business shall not be considered a 
‘Startup’.
Page 4


E C O N O M Y
E X T E R N A L S E C T O R
UPDATES
PART - 1
E-COMMERCE
E-commerce means buying and selling of goods and services including digital products over digital & 
electronic network.
Inventory based model of e-commerce
An e-commerce activity where inventory of goods and services is owned by e-commerce entity and is 
sold to the consumers directly. 
FDI is not permitted in inventory based model of e-commerce.
Marketplace based model of e-commerce
Means providing of an information technology platform by an e-commerce entity on a digital & 
electronic network to act as a facilitator between buyer and seller.
100% FDI under automatic route is permitted in marketplace model of e-commerce.
Inventory of a vendor will be deemed to be controlled by e-commerce marketplace entity if more 
than 25% of purchases of such vendor are from the marketplace entity or its group companies. 
STARTUP
1. Upto a period of seven years from the date of incorporation/registration, if it is incorporated as 
a private limited company or registered as a partnership firm or a limited liability partnership 
(under the Limited Liability Partnership Act, 2008) in India. 
2. In the case of Startups in the biotechnology sector, the period shall be upto ten years from the 
date of its incorporation and registration.
3. T urnover of the entity for any of the financial years since incorporation/ registration has not 
exceeded Rs. 25 crore
4. Entity is working towards innovation, development or improvement of products or processes 
or services, or if it is a scalable business model with a high potential of employment generation 
or wealth creation.
An entity formed by splitting up or reconstruction of an existing business shall not be considered a 
‘Startup’.
EXPORT CREDIT 
GUARANTEE CORPORATION
It is a wholly owned by Government of India
Set up in 1957 
Promoting exports by providing Credit Risk Insurance and related services for exports. 
It functions under the administrative control of Ministry of Commerce & Industry
What does ECGC do?
Provides a range of credit risk insurance covers to 
- Exporters
- Banks and financial institutions
- Joint ventures abroad
Government of India has approved capital infusion of Rs. 2,000 Crore to be released during FY 2017-
18 to FY2019-20.
Page 5


E C O N O M Y
E X T E R N A L S E C T O R
UPDATES
PART - 1
E-COMMERCE
E-commerce means buying and selling of goods and services including digital products over digital & 
electronic network.
Inventory based model of e-commerce
An e-commerce activity where inventory of goods and services is owned by e-commerce entity and is 
sold to the consumers directly. 
FDI is not permitted in inventory based model of e-commerce.
Marketplace based model of e-commerce
Means providing of an information technology platform by an e-commerce entity on a digital & 
electronic network to act as a facilitator between buyer and seller.
100% FDI under automatic route is permitted in marketplace model of e-commerce.
Inventory of a vendor will be deemed to be controlled by e-commerce marketplace entity if more 
than 25% of purchases of such vendor are from the marketplace entity or its group companies. 
STARTUP
1. Upto a period of seven years from the date of incorporation/registration, if it is incorporated as 
a private limited company or registered as a partnership firm or a limited liability partnership 
(under the Limited Liability Partnership Act, 2008) in India. 
2. In the case of Startups in the biotechnology sector, the period shall be upto ten years from the 
date of its incorporation and registration.
3. T urnover of the entity for any of the financial years since incorporation/ registration has not 
exceeded Rs. 25 crore
4. Entity is working towards innovation, development or improvement of products or processes 
or services, or if it is a scalable business model with a high potential of employment generation 
or wealth creation.
An entity formed by splitting up or reconstruction of an existing business shall not be considered a 
‘Startup’.
EXPORT CREDIT 
GUARANTEE CORPORATION
It is a wholly owned by Government of India
Set up in 1957 
Promoting exports by providing Credit Risk Insurance and related services for exports. 
It functions under the administrative control of Ministry of Commerce & Industry
What does ECGC do?
Provides a range of credit risk insurance covers to 
- Exporters
- Banks and financial institutions
- Joint ventures abroad
Government of India has approved capital infusion of Rs. 2,000 Crore to be released during FY 2017-
18 to FY2019-20.
GENERAL DATA PROTECTION REGULATION
(GDPR)
The GDPR was approved and adopted by the EU Parliament in April 2016. 
GDPR came into force on 25th May 2018.
The GDPR not only applies to organisations located within the EU but also applies to 
organisations located outside of the EU if they offer goods or services to, or monitor the 
behaviour of, EU data subjects. 
It applies to all companies processing and holding the personal data of data subjects residing in 
the European Union, regardless of the company’s location.
The GDPR applies to ‘personal data’, meaning any information relating to an identifiable person 
who can be directly or indirectly identified in particular by reference to an identifier. 
This definition provides for a wide range of personal identifiers to constitute personal data, 
including name, identification number, location data or online identifier, reflecting changes in 
technology and the way organisations collect information about people.