Home Retail Government permits 100 per cent FDI in e-commerce

    Government permits 100 per cent FDI in e-commerce

    By  
    SHARE

    With an aim to attract more foreign investments, the Government has permitted 100 per cent foreign direct investment () in the market place format of e-commerce retailing.

    Government permits 100 pc FDI in e-commerce
    FDI has not been allowed in inventory-based model of e-commerce

    FDI has not been allowed in inventory-based model of e-commerce as per the guidelines issued by the Department of Industrial Policy and Promotion () on .

    To bring clarity, the DIPP has also come out with the definition of ‘e-commerce’, ‘inventory-based model’ and ‘market place model’.

    Market place model of e-commerce means providing of an IT platform by an e-commerce entity on a digital and electronic network to act as a facilitator between buyer and seller.

    The inventory-based model of e-commerce means an e-commerce activity where inventory of goods and services is owned by e-commerce entity and is sold to consumers directly, according to the guidelines.

    According to DIPP, a market place entity will be permitted to enter into transactions with sellers registered on its platform on business-to-business basis.

    As per the guidelines, an e-commerce firm, however, will not be permitted to sell more than 25 per cent of the sales affected through its market place from one vendor or their group companies.

    READ MORE:

    Kishore Biyani predicts end to predatory pricing

    IAMAI welcomes 100 pc FDI; RSS, CAIT oppose