100% FDI in e-Commerce in India

Definition of e-Commerce

E-commerce means buying and selling of goods and services including digital products over digital and electronic network

•India's E-Commerce Companies have finally been legitimized

•Not just that, 100% FDI has been allowed in companies categorized as 'marketplace' model

Boost for e-Commerce

Who will get 100% FDI?

•100% FDI will be allowed to the marketplace model

•Companies that act as Facilitator between buyer and seller, that don’t actually owe any goods and inventory will now get 100% FDI

For example: Companies like ‘Amazon’ will be allowed to get 100% FDI

However, FDI will not be allowed in companies who follow inventory based model

Some Relief For Business to Consumer based Companies

•Companies that sell directly to consumers can be referred to as B2C companies

•FDI will be allowed if Goods are made in India and are sold through e-retail platform

•Internet and mobile association of India has welcomed this development

•Single-brand entity with brick & mortar can take retailing through e-commerce, but traders in the brick and mortar are calling this a U-Turn by Government on FDI

“This is absolutely great news for our industry, largely because it removes all the ambiguity that has existed over the last few year and recognizes the transformative role that the e-commerce markets places have had on our country especially the million of small businesses who are selling to millions of consumers across the country which earlier never happened. Government clearing these bottle necks is a very positive sign and will impact overall positive sentiment for India”

KUNAL BAHL CO-FOUNDER & CEO OF SNAPDEAL

CONCLUSION

100% FDI is blessing the market place model and compliance will

now be easier in India

Thank You