Homegrown retailers to get Govt nod to explore e-commerce

With the Modi government keen on boosting ‘Brand India’ across the globe, providing a thrust to India-manufactured goods, the buzz is the government may allow Indian companies manufacturing 70 percent of their goods domestically to launch their own web platform. Keeping the e-commerce boom in sight and many global names showing interest in exploring the route to India, the government may allow homegrown retailers such as, Fabindia, Hidesign and Biba to pursue their e-commerce plans.

Experts say a proposal to the effect is ready to be tabled in the cabinet soon. In his first budget speech, after taking up the role of finance minister, Arun Jaitley had said, “FDI in the manufacturing sector is today on the automatic route. The manufacturing units will be allowed to sell its products through retail including e-commerce platforms without any additional approval.” The proposal is said to be following this announcement. Even department of industry policy and promotion (DIPP) is planning to define what an ‘Indian company’ means after some of the local players had queries about it.

Several companies having large manufacturing base in India, have approached the government requesting clarifications over the current policy regime. As of now, e-platforms have foreign investment, cannot involve themselves in any form of direct trading.