Government confirms its opposition to FDI in e-commerce

Sticking to its election manifesto of not allowing FDI in multi-brand retail, the Indian government has once again clarified its stand over FDI in multi-brand e-commerce. “There has been a lot of talk on e-commerce. We are conscious that e-commerce should not become a back door entry for multi-brand retail,” said Nirmala Sitharaman, Minister of State for Commerce and Industry during her two-day visit to London to hold discussions with investors and members of the Confederation of British Industry (CBI) on the government’s newly-launched ‘Make in India’ campaign.

Referring to India's largest e-retailer and its so-called ‘Big Billion Day’ sale earlier this month which had led to complaints, she added, “Post the Flipkart issue, a lot of inputs have come from concerned citizens, retailers and consumers and these complaints are being looked into. That does mean any investigation is going on into any particular e-commerce company.”

During its election campaign, the party in its manifesto had said that “barring the multi-brand retail sector, FDI will be allowed in sectors wherever needed for job and asset creation, infrastructure and acquisition of niche technology and specialised expertise.”

After the earlier UPA government allowed 51 percent FDI in multi-brand retail and left the final decision of allowing foreign retailers to particular state governments. Experts feel the new government should look at the policy with fresh perspective and find a solution to the problems while welcoming investment in the sector.