Centre to hold discussions to streamline B2C ecommerce

The Modi government is expected to deliberate over finalising a policy for business-to-consumer (B2C) e-commerce. Commerce and industry minister Nirmala Sitharaman will lead the discussion. Similar talks were held recently with the stakeholders of ecommerce and physical retailers. While foreign retailers like Amazon, welcomed the move to allow 100 percent FDI in B2C ecommerce, homegrown players Flipkart, Snapdeal, posed strong opposition. At present, 100 per cent FDI is allowed in the business-to-business e-commerce space, which allows global retailers to operate cash-and-carry business in India.

The Retailers Association of India (RAI) had expressed strong opposition to the government’s move to approach stakeholders of the ecommerce market to seek their views on FDI policy in e-commerce segment. The association felt that the retail industry must be classified on the basis of category of goods and services provided and not on the basis of brick and mortar stores or e-commerce.