An ecommerce subgroup has proposed that the Centre allow foreign direct investment (FDI) in an inventory-led online retail model, limited to players who are stocking products under the Make In India campaign. According to Press Note 3 of 2016, as of now, 100% FDI is allowed in online marketplace models.
The subgroup comprised representatives of industry bodies and ecommerce companies, and officials from the ministry of corporate affairs, ministry of electronics and information technology (MeitY), the Department of Industrial Policy and Promotion (DIPP), and the Competition Commission of India (CCI).
The proposal came along the lines of ongoing discussions on the new ecommerce policy. A group of nine secretaries led by commerce secretary Rita Teaotia will meet on Friday to discuss data localisation, FDI in inventory-led online retail, consumer protection, and emerging technologies as India seeks to finalise an e-commerce policy by end of the year.
According to reports, the policy is expected “to set a new definition for ecommerce that will pin greater liability and responsibility on online retailers, which may have to seek government accreditation.”
The reports further highlighted that going forward, online retail companies may also have to integrate with the National Consumer Helpline to address consumer issues.
FDI In Inventory-Led Online Retail: Why The Push Now?
The ecommerce subgroup has suggested the above proposal for business-to-consumer (B2C) models that have Indian entrepreneurship and control. It has further suggested stipulations such as: