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Guidelines of FDI on e-commerce issued to provide clarity: Minister
Economy

Guidelines of FDI on e-commerce issued to provide clarity: Minister

Agency News

New Delhi, Feb 4: To provide clarity to the extant policy and after extensive stakeholder consultations, guidelines for FDI on the e-commerce were issued to provide further clarity to the policy, the Lok Sabha was informed on Monday.

'With a view to provide clarity to the extant policy and after extensive stakeholder consultations, guidelines for FDI on the e-commerce were issued vide Press Note 3 (2016). To provide further clarity to FDI policy on e-commerce, Press Note 2 (2018) was issued,' Minister of State for Commerce and industry CR Chaudhary said in a written reply.

In order to ensure due compliance of the FDI policy on e-Commerce, Press Note 2 (2018) has been issued. It puts in place certain conditions which include an entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity. e-Commerce marketplace entity will not mandate any seller to sell any product exclusively on its platform only.

This Press Note is effective from February 1, 2019. 'Representations have been received to defer the implementation of Press Note 2. The FDI policy on e-Commerce, first pronounced through Press Note 2 of 2000, permitted 100 per cent FDI in B2B e-commerce activities,' he said.

Stakeholder consultations on creating a framework for National Policy on e-Commerce with representatives from Government Ministries, Departments, Reserve Bank of India, industry bodies, e-commerce companies, telecom companies, IT companies and payment companies have been held.

Issues regarding the e-commerce sector are regularly reviewed by the Government. The e-commerce sector is expected to keep growing in future because of a number of reasons. The FDI policy on e-commerce has remained unchanged. Better enforcement of this policy will contribute significantly to growth of this sector over medium and long term. (UNI)