The government on July 30 discussed about the need to ease out FDI regulation in inventory based e-commerce segment in a meeting with representatives of the industry.
A day after the government discussed allowing 49 percent foreign direct investment (FDI) in inventory based e-commerce model, online traders association says it will oppose any such move regardless of the ownership structure.
“Violations of FDI policy will keep on happening as the government is turning a blind eye. We will not allow a hybrid model of marketplace regardless of ownership structure. Either it has to be a 100 percent marketplace or 100 percent retailer,” All India Online Vendor Association (AIOVA) said in a statement.
The government on July 30 discussed about the need to ease out FDI regulation in inventory based e-commerce segment in a meeting with representatives of the industry.
The idea is to promote the sale of domestically-produced goods through online platforms by allowing limited inventory in B2C online retail firms such as Flipkart, Snapdeal, Shopclues and Paytm Mall.
The clauses being discussed are that the products sold will be “100 percent made in India” and the founder or promoter of the company would be a resident Indian. It also says the platform company would be controlled by an Indian management and foreign equity would not exceed 49 percent.
Moneycontrol first broke the story the government was mulling allowing FDI-funded e-commerce firms to switch over from the marketplace to the inventory model.
