New Delhi: The government is considering permitting 100 percent FDI in the marketplace format of ecommerce retailing with a view to attracting more foreign investments. The norms on FDI in the sectors of e-commerce, and IT and 1TeS are expected to be part of detailed guidelines, which would be rolled out soon by the government, official sources said. Last week, a group of senior officials from departments of DIPP, Corporate Affairs and Economic Affairs, among others, discussed these matters in detail. According to sources, the DIPP has suggested that 100 per cent FDI should be allowed in ‘marketplace model e-commerce” activities.
In such a model, the e-commerce company provides an online platform for buyers and sellers. At present, global giants like Amazon and Ebay are operating online marketplace s in India while home grown players like Flipkart and Snapdeal have foreign investments even as there are no clear Fl)! guidelines on various online retail models. An e-commerce firm carry its business either through marketplace model or inventory based model. In the inventory based model, a company owns and keeps the goods in warehouse. The officials also deliberated upon the definition of ‘e-commerce’. The Department of Industrial Policy and Promotion is working on guidelines for e-commerce sector in the backdrop of ongoing tussle between online and offline retailers.
