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Addressing the Global Digital Divide in E-commerce

Ensuring fair participation in the expanding digital economy

Addressing the Global Digital Divide in E-commerce

  • 04 Nov, 2025
  • 435

BRIDGING THE GLOBAL DIGITAL DIVIDE IN E-COMMERCE

Overview

India has urged member countries of the World Trade Organization (WTO) to collaborate in reducing the global digital divide — the gap in access to digital technology between developed and developing nations, as well as between large corporations and small enterprises. Addressing this issue is essential to ensure fair and inclusive participation of developing and least-developed countries (LDCs) in the expanding global e-commerce ecosystem.

1. What Does Digital Divide Mean?

The digital divide refers to the disparity between individuals, businesses, or countries that have access to modern digital technologies — such as high-speed internet, e-payment systems, and cloud infrastructure — and those that do not.

Example: A company in the United States can sell online using advanced logistics, artificial intelligence, and secure digital payment systems, while a small enterprise in Africa or India may struggle with slow internet speeds and limited access to such tools.

2. Why Is India Raising This Issue at the WTO?

India advocates for equal opportunities in the global e-commerce market. It highlights that large technology corporations from developed countries dominate online trade due to superior digital infrastructure and innovation capacity. As a result, smaller economies and enterprises face barriers to fair competition and market access. India’s intervention seeks to ensure that the benefits of digital trade are distributed more equitably.

3. What Did India Propose?

During the WTO’s Work Programme on E-Commerce, India presented several key recommendations aimed at promoting inclusivity and cooperation:

  • Encouraging member countries to share their national experiences in e-commerce and Digital Public Infrastructure (DPI).
  • Identifying gaps in digital connectivity and interoperability among global systems.
  • Developing a global online platform for technology exchange where countries can share tools, frameworks, or innovations to narrow the divide.

Example: Such a platform could host best practices on digital payments, cybersecurity standards, or logistics solutions to support developing nations.

4. What Is Digital Public Infrastructure (DPI)?

Digital Public Infrastructure (DPI) refers to foundational systems that enable secure and accessible digital services — such as Aadhaar, Unified Payments Interface (UPI), and DigiLocker in India. These platforms provide the basic building blocks for digital inclusion by allowing citizens and businesses to transact, verify, and store data digitally. India suggested that other countries adopt similar interoperable systems to foster inclusive growth.

5. What Are the Focus Areas?

India and other WTO members emphasized several priority areas to bridge the digital divide:

  • Promoting digital literacy and skills, particularly for women and small entrepreneurs.
  • Expanding internet access in rural and underserved regions.
  • Strengthening digital infrastructure such as broadband networks and mobile connectivity.
  • Encouraging competition to prevent monopolies by large tech corporations and supporting MSMEs (Micro, Small, and Medium Enterprises) in global e-commerce.

6. Why Does This Matter?

Without equitable access to digital tools, developing countries risk being excluded from the rapidly growing global digital economy. By narrowing this gap, small businesses and entrepreneurs from countries like India, Bangladesh, and Kenya can engage more effectively in cross-border e-commerce, expanding trade opportunities and reducing economic inequality.

Synopsis (75 Words)

India has urged the WTO to take collective action to bridge the global digital divide that hinders developing countries and small enterprises in e-commerce. It proposed promoting digital literacy, enhancing public digital infrastructure, and creating a shared technology exchange platform. By emphasizing inclusivity, interoperability, and greater internet access, India envisions an equitable global digital economy that empowers MSMEs and reduces dependency on dominant technology players.

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