Government mulling 100% FDI in market place model of ecommerce
Advertisement
In a bid to attract more foreign investments, the government is considering permitting 100 per cent FDI in the market place format of e-commerce retailing.
The norms on foreign direct investment (FDI) in the sectors of e-commerce, and IT and ITeS are expected to be part of detailed guidelines, which would be rolled out soon by the government, sources said.
Last week, a group of senior officials from departments ofDIPP , Corporate Affairs and Economic Affairs, among others, discussed these matters in great detail.
According to sources, the DIPP has suggested that 100 per cent FDI should be allowed in "market place model e-commerce" activities.
In such a model, the e-commerce company provides an online platform for buyers and a sellers.
At present, global e-tailer giants like Amazon and Ebay are operating online marketplaces in India while homegrown players like Flipkart and Snapdeal have foreign investments even as there are no clear FDI guidelines on various online retail models.
An e-commerce firm carry its business either through market place model or inventory based model.
In the inventory based model, a company owns and keeps the goods in warehouses.
The officials also deliberated upon the definition of "e-commerce". It may broadly cover transactions between buyer and seller through electronic mode like internet, mobile and televisions.
The Department of Industrial Policy and Promotion (DIPP) is working on guidelines fore-commerce sector in the backdrop of ongoing tussle between online and offline retailers.
At present, 100 per cent FDI is allowed only in business-to-business (B2B) e-commerce and not in the retail segment.
(Image credits: BCCL)
Advertisement
The norms on foreign direct investment (FDI) in the sectors of e-commerce, and IT and ITeS are expected to be part of detailed guidelines, which would be rolled out soon by the government, sources said.
Last week, a group of senior officials from departments of
According to sources, the DIPP has suggested that 100 per cent FDI should be allowed in "market place model e-commerce" activities.
In such a model, the e-commerce company provides an online platform for buyers and a sellers.
Advertisement
An e-commerce firm carry its business either through market place model or inventory based model.
In the inventory based model, a company owns and keeps the goods in warehouses.
The officials also deliberated upon the definition of "e-commerce". It may broadly cover transactions between buyer and seller through electronic mode like internet, mobile and televisions.
The Department of Industrial Policy and Promotion (DIPP) is working on guidelines for
Advertisement
The department has already carried out stakeholders consultations with states, e-commerce companies and other departments. At present, 100 per cent FDI is allowed only in business-to-business (B2B) e-commerce and not in the retail segment.
(Image credits: BCCL)
Advertisement
- US buys 81 Soviet-era combat aircraft from Russia's ally costing on average less than $20,000 each, report says
- 2 states where home prices are falling because there are too many houses and not enough buyers
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- 9 health benefits of drinking sugarcane juice in summer
- 10 benefits of incorporating almond oil into your daily diet
- From heart health to detoxification: 10 reasons to eat beetroot
- Why did a NASA spacecraft suddenly start talking gibberish after more than 45 years of operation? What fixed it?
- ICICI Bank shares climb nearly 5% after Q4 earnings; mcap soars by ₹36,555.4 crore
- Nothing Phone (2a) blue edition launched
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market