e-Commerce FDI Policy
The Ministry of Commerce and Industry has vide Press Note 3 of
2016 series, brought the much awaited clarity for Foreign Direct
Investment (FDI) in the e-commerce sector, a move that will bring
relief to large e-commerce companies like Amazon, Flipkart and
Snapdeal. This ends the uncertainty over the business model being
used by India's biggest ecommerce companies which has been
challenged in court by brick-and-mortar stores.
Although, retail e-commerce, i.e., business-to-consumer (B2C) is
generally not permitted, B2C e-commerce would be permitted under
the following three circumstances: (i) manufacturer selling
products manufactured in India through e-commerce retail, (ii)
single-brand retail trading entity operating through brick and
mortar stores and undertaking retail trading through e-commerce
route, and (iii) an Indian manufacturer selling its own single
brand products, being the owner of the Indian brand and
manufacturing in terms of
