States asked to submit their views on FDI in ecommerce
By Sujata Sachdeva
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After commerce and industries minister Nirmala Sitharam met the state
representatives to discuss issues pertaining to foreign investment in
ecommerce, states are mandated to submit their views on the matter within
15 days. She had earlier met stakeholders of the commerce sector to seek
their opinion on FDI in ecommerce, which has seen a clear divide in opinion
among homegrown players like Flipkart, Snapdeal v/s global biggies like
Amazon. At present, 100 percent 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 active in ecommerce space 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. The Confederation of All India Traders (CAIT) too has demanded suspension of any move to allow FDI in e-commerce. “A National Trade Policy for retail trade should be formulated and a separate ministry of internal trade needs to be set-up to look after domestic trade in India,” it said.