Government holds discussions on FDI in B2C e-commerce

Published on May 15, 2015 15:19:25 PM
Business

FICCI has stressed on focus of development and encouragement of the MSME sector which it feels is the driving force behind the Make in India vision.

FICCI stated that the move will ensure that domestic manufacturing gets impetus.

FICCI also opines that foreign investments should be allowed in B2C e-commerce, with a focus on sourcing from manufacturers and in a phased manner.

Basically they want to bring a parity between online and offline retail policy in relation to FDI levels.

FDI in ecommerce is expected to bring in following benefits to the stakeholders:

• Would create new global markets for small businesses/entrepreneurs and help them scale at almost no cost

• An open and de-regulated E-commerce sector would mean greater access to wider and diverse base of consumers and retailers

• Generate employment as well as spur investment/innovation in supply chain management, warehousing, logistics services and other ancillary sectors

Commerce and Industry minister, Nirmala Sitharaman has given a months’ time to submit FICCI’s study on the same which will analyse the situation on the ground and derive on global best practices.

Meanwhile, Nasscom has re-iterated demand for 100 per cent FDI in B2C e-commerce and showcased recommendations on investment policy to government stakeholders.