In a major reform on the eve of PM Narendra Modi's visit to Brussels and the US, the government on Tuesday allowed 100% foreign direct investment (FDI) in the marketplace format of e-commerce via the automatic route.
This is the second segment of retail to be opened up in a month. In the Budget, the government had allowed 100% FDI for marketing locally produced food items even as FDI in multi-brand retail remained on the backburner.
The press note issued by the department of industrial policy and promotion said 100% FDI would be allowed only for e-commerce players under the marketplace model and not the inventory-led model. Companies like Amazon and Alibaba can legally set up online marketplaces where sellers can hawk their products. But they can't directly sell anything.
Government clears 100% FDI in e-commerce marketplaces - Times of India
This is the second segment of retail to be opened up in a month. In the Budget, the government had allowed 100% FDI for marketing locally produced food items even as FDI in multi-brand retail remained on the backburner.
The press note issued by the department of industrial policy and promotion said 100% FDI would be allowed only for e-commerce players under the marketplace model and not the inventory-led model. Companies like Amazon and Alibaba can legally set up online marketplaces where sellers can hawk their products. But they can't directly sell anything.
Government clears 100% FDI in e-commerce marketplaces - Times of India
