Govt allows 100% FDI in e-commerce

New Delhi: The Union Government on Tuesday allowed 100 percent FDI through automatic route in most of e-commerce retailing.

The move by the government will not only help domestic players like Flipkart and Snapdeal to attract more foreign investment but also open the doors for the foreign retailers like Alibaba to set shop easily.

Welcoming the development, Snapdeal said the norms will provide clarity to India's fast growing e-commerce industry.

As per the guidelines issued by the Department of Industrial Policy and Promotion (DIPP) on FDI in e-commerce, foreign direct investment (FDI) has not been permitted in inventory-based model of e-commerce.

E-commerce marketplace may provide support services to sellers in respect of warehousing, logistics, order fulfilment, call centre, payment collection and other services, DIPP said in a press release, adding that such entities will not exercise ownership over the inventory. 

"E-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods or services and shall maintain level playing field," the guidelines said.

(With agency inputs)

News24 Bureau