Ignoring yet eCommerce India?
It
grew 17% to a volume of
USD
38.5bn in 2018-19
As
per the Economic Survey 2017-18, the electronic commerce (e-commerce) market in
India is estimated at USD 33 billion, with a 19.1 percent growth rate in
2016-17. As per the National Association of Software and Services Companies
(NASSCOM) Strategic Review 2018, in the Information Technology and Business
Process Management (IT-BPM) sector in India, the Indian e-commerce market was
USD 33 billion in 2017-18 and reached USD 38.5 billion, growing at a rate of
about 17% in the financial year 2018-19.
As
per extant Foreign Direct Investment (FDI) policy, FDI up to 100% is permitted
under automatic route in companies engaged in e-commerce provided that such
company engaged only in Business to Business (B2B) e-commerce. Further, 100%
FDI under automatic route is permitted in marketplace model of e-commerce but
FDI is not permitted in inventory based model of e-commerce.
Moreover,
an entity is permitted to undertake retail trading through e-commerce under the
following circumstances, subject to FDI policy provisions:
1:
A manufacturer is permitted to sell its products manufactured in India through
e-commerce retail.
2:
A single brand retail trading entity operating through brick and mortar stores
is permitted to undertake retail trading through e-commerce.
3:
A food product retail trading entity is allowed to undertake retail trading,
including through e-commerce, in respect of food products manufactured and/or
produced in India.
For
foreign investment in sectors under automatic route, no prior permission of
Government of India is required.
FDI
in retail has been allowed in a calibrated manner after having intensive
consultations with stakeholders including concerned Ministries, Departments,
State Governments, apex industry chambers, Associations and other organizations
taking into consideration their views/comments.
This
information was given by Minister of State for Commerce & Industry C R Chaudhary
in a written reply in the Lok Sabha.
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