27 August 2022, Mumbai
The foreign direct investment (FDI) policy in the e-commerce space needs to be clarified and the sector promoted by plugging loopholes, said industry body PHDCCI in the letter to Anurag Jain, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT).
The chamber said online retailers are exploring loopholes in the current policy to conduct inventory-based e-commerce/multi-brand retail trade in the garb of running marketplace platforms.
The present policy allows 100 percent FDI in marketplace e-commerce platforms and prohibits foreign direct investment in inventory-based models of e-commerce.
A report of the Parliamentary Standing Committee on Commerce has made some key observations and recommendations in the interest of the Indian consumer and other stakeholders who not only influence the consumers' choices in e-commerce but also shape the e-commerce ecosystem, it added.
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