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ARTICLE · 07 APRIL 2016

2016-04-04 INDIA 100% FDI Permitted In E-Commerce Retailing

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On Tuesday, March 29, 2016, a major development took place regarding the Foreign Direct Investment (FDI) policy and the e-commerce sector in India.

IndiaGovernment, Public Sector
Vikrant Rana
Vikrant Rana
Rupin Chopra
Rupin Chopra
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On Tuesday, March 29, 2016, a major development took place regarding the Foreign Direct Investment (FDI) policy and the e-commerce sector in India. As reported by leading Indian newspapers like The Hindu and The Times Of India, the Government of India clarified its position on FDI in the e-commerce sector, that is, a market-place where buyers deal with sellers directly in the absence of any physical infrastructure. The Government has permitted 100% FDI in the market-place format of e-commerce retailing through the automatic route in an attempt to increase foreign investment in the e-commerce sector. The clarification came in the form of a press note titled 'Guidelines for Foreign Direct Investment (FDI) on E-Commerce' issued by the Department of Industrial Policy and Promotion (DIPP) on FDI in online retail models to support the aforementioned move of the Government. This is a much welcome move as it would encourage foreign investment and foreign exchange inflows and

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