Business-to-consumer (B2C) ecommerce is not included in the Government of India’s new policy to allow up to 51 percent foreign direct investment (FDI) in multi-brand retail trading.
Business-to-consumer (B2C) ecommerce is not included in the Government of India's new policy to allow up to 51 percent foreign direct investment (FDI)#
The notification issued by the Government makes it clear that retail trading through ecommerce will not be permissible for firms with FDI that are engaged either in single-brand or multi-brand retail activity.
Business-to-consumer (B2C) ecommerce is not included in the Government of India's new policy to allow up to 51 percent foreign direct investment (FDI)#
It implies that a global multi-brand retailer like Tesco can invest up to 51 percent in a joint venture for setting up stores in Indian cities with a population of more than one million, but it cannot sell its products online through the same venture.
Business-to-consumer (B2C) ecommerce is not included in the Government of India's new policy to allow up to 51 percent foreign direct investment (FDI)#
It also implies that an India-based online retailer cannot attract FDI in its B2C business, nor foreign online retail firms can do their business in India.
Business-to-consumer (B2C) ecommerce is not included in the Government of India's new policy to allow up to 51 percent foreign direct investment (FDI)#
The move might come as a big relief for India’s ecommerce industry, but experts say, foreign ecommerce companies can have their operations in India by setting up a multi-tier corporate structure.
Business-to-consumer (B2C) ecommerce is not included in the Government of India's new policy to allow up to 51 percent foreign direct investment (FDI)#
For example, if a joint venture, which is Indian-owned and managed, creates another subsidiary firm to sell its products online, it would be permissible under the existing rules.
Business-to-consumer (B2C) ecommerce is not included in the Government of India's new policy to allow up to 51 percent foreign direct investment (FDI)#
Fibre2fashion News Desk - India
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