Encouraged by the government's decision to allow foreign direct
investment (FDI) in multi-brand retail, the industry has stepped up its
demand for opening retail e-commerce to foreign investment to bring the
policy in line with international practices.
Under the current dispensation, the companies like Flipkart, Homeshop18 and Jebong, which sell products online directly to consumers cannot access foreign direct investment (FDI).
Although the government's notification yesterday announced FDI in multi-brand retail, it has retained the exsiting provisions which only allow FDI in business-to-business e-commerce and not in business-to-consumer.
As per the policy, retail trading in any form by means of e-commerce would not be permissible for companies with FDI, engaged in the activity of multi-brand retailing and single brand retailing.
When asked what will happen to B-to-C companies which had raised foreign capital, Saurabh Chandra, secretary in the Department of Industrial Policy and Promotion (DIPP) said, "investments received under the FDI scheme need to be
compliant with FDI policy...extant FDI policy does not permit FDI in B-to-C e-commerce".
The government, according to CII Director General Chandrajeet Banerjee, should allow FDI in e-commerce as it would help companies to attract moder technologies and capital.
Echoing similar views, PWC India Executive Director Akash Gupt said the government should look at separate guidelines for FDI in e-commerce activities.
"Worldwide companies are adopting different business models like e-commerce and m-commerce (mobile commerce). Therefore there is a need for an enabling framework," Gupt added.
Head of Tax and expert on FDI with corporate law firm Amarchand & Mangaldas, Krishan Malhotra, too felt the government's current policy will impact several players.
"The government should come out with some clarity on this issue. I think it will create problems for companies like Flipkart etc," Malhotra said.
Under the current dispensation, the companies like Flipkart, Homeshop18 and Jebong, which sell products online directly to consumers cannot access foreign direct investment (FDI).
Although the government's notification yesterday announced FDI in multi-brand retail, it has retained the exsiting provisions which only allow FDI in business-to-business e-commerce and not in business-to-consumer.
As per the policy, retail trading in any form by means of e-commerce would not be permissible for companies with FDI, engaged in the activity of multi-brand retailing and single brand retailing.
When asked what will happen to B-to-C companies which had raised foreign capital, Saurabh Chandra, secretary in the Department of Industrial Policy and Promotion (DIPP) said, "investments received under the FDI scheme need to be
compliant with FDI policy...extant FDI policy does not permit FDI in B-to-C e-commerce".
The government, according to CII Director General Chandrajeet Banerjee, should allow FDI in e-commerce as it would help companies to attract moder technologies and capital.
Echoing similar views, PWC India Executive Director Akash Gupt said the government should look at separate guidelines for FDI in e-commerce activities.
"Worldwide companies are adopting different business models like e-commerce and m-commerce (mobile commerce). Therefore there is a need for an enabling framework," Gupt added.
Head of Tax and expert on FDI with corporate law firm Amarchand & Mangaldas, Krishan Malhotra, too felt the government's current policy will impact several players.
"The government should come out with some clarity on this issue. I think it will create problems for companies like Flipkart etc," Malhotra said.
Hi,
ReplyDeleteThis is gonna shock all of you , out of your pants.
It was decided in the Bilderberg club long ago, to gate crash into Indian economy, by a conspiracy.
If you want to know what this elite club is –
Punch into Google search
THE SHREWD CLUB WITHIN THE NAÏVE BILDERBERG CLUB- VADAKAYIL.
also
Punch into Google search
WALMART IS NOT GOOD FOR INDIA- VADAKAYIL
The banking cartel has been given a toe hold in India, by giving away FDI in multi-brand retail and FDI in insurance.
Insurance affects transport costs and trade costs -- it requires perception to understand all this.
The approach to micro economics and macro economics , cannot be top down or bottoms up, every which way, based on testosterone levels ..
Economics must be re-written by Indian intelligentsia , where the TERRAIN MUST PREVAIL OVER THE MAP .
All perceptive students of economics on this planet -- please start demanding answers from your professors — I am sure you know that you are being taught empirical pseudo-science. If it is blasphemy so be it!
This must be a win-win model ensuring the down trodden are not left behind, with freedom from “risk of slavery” as number one condition.
We are confusing GDP with economic progress. We are destroying entrepreneurial activity and eating our own children.
Fitch , S&P and Moody’s are bouncers for the banking cartel. The economics of Rothschild’s Indian alchemist Manmohan and his gunslinger Montek is VULGAR pseudo science.
DORKS and desh drohis shall lay off !
Capt ajit vadakayil
..