In the third phase of Lockdown, the government had allowed the E-commerce business of non-essential products only in green and orange zones. However, essential products like food and grocery operated nationwide. As per the Home Ministry, in Lockdown 4.0, all E-commerce activities will be opened up, except those specifically prohibited. Ministry further has given the power to the states and UTs to which will have the final say as to whether a certain E-commerce business should be allowed to function in their state or not, depending on their local needs. Containment zones, however, will not get relief and online sales of only essential products will be permitted according to the guidelines released by the Home Affairs Ministry on Sunday.

Cab services of Ola and Uber are also allowed to function as they were not in the list of prohibited activities. After almost two months, ride-hailing apps will be able to function again at the dispense of the respective states. 

Earlier, after opening green and orange zones for sale of non-essential products, e-commerce companies saw a very low demand. Big companies like Flipkart and Amazon only managed 20% of their sales in the first-week post handing out the relaxations. Those companies are hopeful of states to resume the e-commerce activities, said a senior executive of a leading e-commerce company who chose to remain anonymous said, "We don't expect states to restrict e-commerce activity in any way and we must start accepting orders from Monday. Also, offline stores are open in most locations, so it shouldn't be a problem for us as well."

If allowed, e-commerce is set to boost the country's failing economy.