Revise FDI policy to control investments in e-commerce companies, urges CAIT
The Confederation of All India Traders (CAIT) has urged Commerce Minister Piyush Goyal to revise India's Foreign Direct Investment (FDI) policy to ensure control over the funds flowing into foreign funded e-commerce entities like Amazon and Flipkart. B C Bhartia, National President and Praveen Khandelwal, Secretary General, CAIT said, despite solemn declarations made by the minister on various public platforms, companies continue to flout FDI policy.
The most rampant and subsisting violation by Amazon and Flipkart has been the creation of a complex web of affiliated entities, by way of equity control or economic participation.
Preferential treatment to a 'few preferred sellers', predatory pricing, deep discounting, controlling inventory and making e-commerce an area of uneven level playing field are some of ways in which e-commerce companies have been violating rules, they added.
