E-comm exports: Govt mulls inventory model

MOVE AIMS TO BOOST TRADE WHILE SHIELDING SMALL RETAILERS

- MUKESH JAGOTA

THE MINISTRY OF Commerce and Industry has started consultations with other departments and ministries on allowing e-commerce companies with majority foreign shareholding to build their own inventory of goods for exports from India.

Under the existing rules the foreign e-commerce companies can only operate as marketplaces in the domestic market and are not allowed to hold their own inventory and sell it on their own account.

The move will help increase e-commerce exports from India without impacting the business of small retailers, which the current policy seeks to protect. It is felt in some circles that e-commerce companies with their deep pockets and discounting can push local retailers out of business if they are allowed to sell their own products.