ARTICLE · 10 APRIL 2016

Foreign Investment - E-Commerce Sector

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The Department of Policy and Promotion, Ministry of Commerce and Industry, Government of India ("GOI") has recently issued Press Note no. 3 (2016 Series) liberalising the terms governing foreign direct investment...

IndiaGovernment, Public Sector

Vaishakh Kapadia

Jenika Solanki

The Department of Policy and Promotion, Ministry of Commerce and Industry, Government of India ("GOI") has recently issued Press Note no. 3 (2016 Series) liberalising the terms governing foreign direct investment ("FDI") in the e-commerce sector in India ("Press Note").

BACKGROUND

By virtue of the FDI policy dated 12 May 2015 and Press Note No. 12 dated 24 November 2015, 100% FDI was permitted in the Business to Business ("B2B") e-commerce, while FDI in Business to Consumer ("B2C") e-commerce was prohibited, except in cases of a manufacturer selling it products manufactured in India through e-commerce retail, or a single brand retail trading entity operating through brick and mortar stores, or an Indian manufacturer selling its own single brand products through e-commerce retail.

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