Govt seeks views on allowing FDI in inventory-based e-comm for export

At present, the country’s FDI policy does not permit overseas investments in the inventory-based model of e-commerce

- OUR CORRESPONDENT

The Commerce and Industry Ministry has floated a note seeking views from various central government departments on a proposal to allow foreign direct investment (FDI) in the inventory-based model of e-commerce solely for export purposes, an official said.

The proposal aims to boost India’s exports without impacting the businesses of small retailers.

At present, the country’s FDI policy does not permit overseas investments in the inventory-based model of e-commerce.

It is 100 per cent allowed through the automatic route in firms that are operating through a marketplace model only, like Amazon and Flipkart.

The proposal is to permit e-commerce entities in the inventory-based model of e-commerce, exclusively for the export of goods and products manufactured or produced in India, in compliance with the existing FDI policy, the official said.