18 Jun GOVERMENT PLANS TO MAKE FURTHER CHANGES TO FDI POLICY IN E-RETAIL
GOVERMENT PLANS TO MAKE FURTHER CHANGES TO FDI POLICY IN E-RETAIL
The recent FDI policy allowing upto 51% FDI in multi retail has opened up a wide discussion and criticism. Many domestic retailers having to face tough competition from the Global entrants are unhappy with this move of the government. At present 100% FDI is allowed only in B2B Commerce and not in B2C commerce. Global retailers have urged the Government to allow FDI in e-retail as well.
The Delhi HC has recently asked the government to consider the plea of RAI (Retailers Association of India) for parity in FDI norms between e-retailers and retailers.
Last month the government had invited major e-retailer giants for a discussion on the FDI policy. However, the Retailers’ Association of India (RAI, the lobby group that represents Future Group, Reliance Industries Ltd’s retail unit and other such retailers, rejected the government invitation for stakeholders’ consultation meeting on foreign direct investment (FDI) policy in the e-commerce sector, saying that retail is a business that should be classified on the basis of category of goods and services provided and not on the basis of channels such as brick-and-mortar stores or e-commerce.
The present scenario shows the possibility of FDI policy being opened up for discussion again.