Millennium Post

Govt to soon start talks on FDI in e-commerce

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 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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