No global company in Indian multibrand retail |
Commerce and industry ministry on Monday has said that the government would not allow multi¬ brand retail trade by foreign e-commerce companies and that they could only be agnostic platforms. Minister Piyush Goyal addressed a meeting with ecommerce companies including Amazon, eBay and Walmart owned Flipkart, and other global digital giants such as Facebook, Dell, SAP, Google, PayPal and IBM. The Department for Promotion of Industry and Internal Trade (DPIIT) tightened the foreign direct investment (FDI) rules for e-commerce companies in December last year. It barred marketplaces from selling products from sellers in which they have an equity interest and entering into deals with brands to sell product exclusively on their platforms. It also stipulated that the inventory of a vendor will be deemed to be controlled by the marketplace if more than 25% of the vendor`s purchases are from the marketplace entity, including its wholesale unit. The marketplace entity or its group companies cannot have control over inventory under the FDI rules. Goyal had a meeting with industry on issues related to digital trade and data localisation, as India looks to finalise its national e-commerce policy.
|
|
|
|