FDI

The government is tweaking FDI limits in aviation and insurance intermediation

A clarification for 100% FDI in contract manufacturing is also expected

The government may extend FDI benefits to single-brand retail

Besides FDI and selling equity, startups can opt for external commercial borrowings as a fundraising option

Foreign banks such as HSBC can support startups on fund raising through external commercial borrowings (ECBs)

For startups, ECBs open up options beyond the domestic financial market which is in a credit crunch right now

India recorded FDI inflows of $44.36 Bn in 2018-19

The FDI investment has fallen M-o-M through the year

The services sector attracted the highest FDI equity inflow

The latest FDI rules came into effect on Feb 1

Myntra has been bringing several new sellers on board: report

The company is believed to have more than 14 private label brands

Amazon’s shares fell by 5.38% to $1626.23, losing $45.22 Bn in market capitalisation

Walmart’s share price were down by 2.06% to $93.86 on NYSE, losing $5.7 Bn in market cap

Since Feb 1,  Amazon and Flipkart, have seen sales fall by as much as a third

The latest changes in ecommerce FDI policy will come into effect from February 1, 2019

Amazon and Flipkart have sought an extension to the deadline

A Medical Innovation Fund should be created to promote innovation, say startups

Similar to the ecommerce sector, they want FDI norms in epharma to be relaxed

The government should take measures to check increasing medical inflation as well

In September 2018, Amazon and Samara Capital agreed to acquire More from Aditya Birla Group

CCI sent a notice to Samara Capital questioning Amazon's role in More if the joint takeover bid is approved

CCI raised questions on how the deal will comply with the updated FDI norms

DIPP on December 26, 2018, introduced certain changes to the 2017 policy governing FDI in the ecommerce sector

Policy changes in the garb of clarifications have the potential to change the dynamics of Indian ecommerce space

The changes are likely to impact the core business model of the likes of Amazon and Flipkart

The companies are reportedly discussing a wider agreement as they finalise the deal

With a call-and-put option, Amazon may call for Biyani’s stake in Future Retail over the long-term

Through the FPI route, Amazon has already picked up stakes in Shoppers Stop and Aditya Birla Retail's ‘More’

Japanese investors invested over $8 Bn into the Indian startup ecosystem between 2014 and mid-2018, according to Inc42 Datalabs

In terms of FDI, UK ranks third after the US and Japan as an investor in India

In 2017, Chinese internet companies invested $5.2 Bn (INR 378.1 Bn) in 30 Indian companies

Niti Aayog CEO Amitabh Kant talks about having only one agency and not ministries or agencies to deal with ecommerce

He stressed on an ecommerce policy that ensures consumer protection

Ecommerce has the potential to generate a vast number of new jobs in the economy, says Kant