n What has been the US experience with ecommerce?
The most significant application of ecommerce has been achieved in the business-to-business environment. Businesses are using ecommerce for several activities, like to make their inventory control more efficient, to go to the global market etc.

Even in the United Status, business-to-consumer ecommerce or e-retailing as we call it, is at a very early stage. It was probably around US $7 billion last year, when it really picked up. Andthat's a very small percentage of our retail activity. But it is growing very fast.

Business-to-business ecommerce has a very positive impact on the economy and should not be underestimated. Even India should keep that in mind. This form of ecommerce picked up in 1996-97 in the US.

In fact, so far all predictions on ecommerce have been surpassed. If you study the penetration of TV, radio and telephones in the US, the pace was pretty slow. However, the internet has really been booming.

Compared to India, the US has many advantages. Credit is very inexpensive and credit cards are widespread. E-retailing is accessible to very many Americans, not all though. The penetration of internet is close to 40 per cent in the US. Our goal is to have all schools and libraries wired to the internet by the end of this year.

n In India, e-retailing has picked up even before business-to-business ecommerce. Isn't there a paradox here?
I wonder if it is so. It is hard to get information on business-to-businessecommerce. Even in America, we found this out as late as in April 1998.

What changes has the US made in its legal framework to enable ecommerce?
We have actually changed very few of ours laws so far. One concern we had was that paper-based contract laws should not come in the way of ecommerce. But we found that these laws were not a hindrance. Some of our states moved very fast towards digital signature legislation. The digital signature is very technology-specific and sometimes it was found to be a hindrance to ecommerce.

We have passed the WIPO, ratified the WTO treaties and in the course of doing so, we have set up a regime for allocating and limiting liabilities for the internet service providers (ISP). That framework was concluded last year. We have entered into a three-year moratorium on imposition of taxes on internet communications.

How popular are digital signatures in the US?
Digital signatures are not popular in the US. In the retailing arena, authentication is not such abig problem. For instance, if someone loses a credit card and reports the loss to the police, the credit card issuer is bound by law to not put a liability of more than $ 50 on the cardholder. So most cardholders are very comfortable with this law and see this as a protection. Therefore, the need for a digital signature is not felt. However, it is required in activities like delivery of government services -- such as medical benefits, social benefits, pensions etc -- to ensure that the benefits reach the right person.

Banks are providing services online. These are protected by means of a password.

How can the Indian industry benefit from ecommerce?
First of all, Indian companies will get access to global markets at a very low cost. So will the Indian consumer. Secondly, ecommerce provides employment. It's a great boon for software professionals. The Silicon Valley is flooded with Indian IT professionals. But with the spread of ecommerce, they can be here in their country and work for Americansoftware companies. There are sites like peoplink.com where the wares of Indian artisans are being showcased.

What are your projections for the growth of ecommerce?
Globally, the total volume of ecommerce is expected to be in access of US $ 1 trillion by 2002. Out of this, e-retailing is expected to be around US $ 40 to 80 billion by 2002, globally. But projections, in my opinion, is very dangerous business.