Govt to soon start talks on FDI in e-commerce
30 Sep 2013 10:28 PM GMT
The Commerce and Industry Ministry will initiate formal consultations with all stake holders soon for allowing FDI in e-commerce activities, which will include selling of insurance and shares, besides retail.
At present, 100 per cent Foreign Direct Investment (FDI) is allowed only in business-to-business (B2B) e-commerce and not in retail trading.
The Department of Industrial Policy and Promotion (DIPP) has started the exercise on the matter and has prepared a ‘draft note’.
‘The issue requires wider consultations. E-commerce is not related only with retail. It includes financial services like insurance and shares. We will soon start consultations,’ a senior official in the DIPP said.
The draft note has looked into issues like international practice in permitting FDI in e-commerce besides analysing the sector. An economic think-tank has also been asked to prepare a note on the issue, the official added.
Global online retailer Amazon.com has sought relaxation in the FDI policy, which restricts such companies from offering services directly to retail consumers. According to a media report, business-to-consumer e-commerce segment will attract investment in back-end infrastructure of companies in country which in turn will create multiple job opportunities.
At present, 100 per cent Foreign Direct Investment (FDI) is allowed only in business-to-business (B2B) e-commerce and not in retail trading.
The Department of Industrial Policy and Promotion (DIPP) has started the exercise on the matter and has prepared a ‘draft note’.
‘The issue requires wider consultations. E-commerce is not related only with retail. It includes financial services like insurance and shares. We will soon start consultations,’ a senior official in the DIPP said.
The draft note has looked into issues like international practice in permitting FDI in e-commerce besides analysing the sector. An economic think-tank has also been asked to prepare a note on the issue, the official added.
Global online retailer Amazon.com has sought relaxation in the FDI policy, which restricts such companies from offering services directly to retail consumers. According to a media report, business-to-consumer e-commerce segment will attract investment in back-end infrastructure of companies in country which in turn will create multiple job opportunities.
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