The news about Indian Government looking to allow FDI in ecommerce came out early last year. Contrary to the expectations, until now no concrete measures have been taken in this regard. But things are looking up as serious talks between Commerce Minister and different states about FDI in e-commerce is finally happening.
In a meeting held by Nirmala Sitharaman, Commerce and Industry Minister of India, several state heads gave FDI in ecommerce a green signal. Haryana’s Finance Minister, Captain Abhimanyu shared with reporters after the meeting, “Government of India invited states to discuss the issue of FDI in ecommerce in B2B and B2C and also bringing FDI in multibrand retail. But one consensus between the states and the centre was there that whatever decision is taken, it must be taken after good deliberation and after engagement with stakeholders at state levels and after assuring ourselves that the interest of the consumers, small retailers as well as SME sector are protected.”
And several states including Andhra Pradesh, Goa, Haryana, Jammu & Kashmir, Karnataka and Madhya Pradesh (with an exception of some states like Tamil Nadu) are supporting this step. A government official shared, “A lot of states backed the idea of allowing FDI in ecommerce while a few supported opening up multibrand retail to foreign investors. At the same time states wanted consumers and small retailers to be protected.”
FDI in Indian ecommerce has been a hot topic from quite a while. Concerns such as whether or not the government should allow foreign investment in the online industry and whether or not it will prove beneficial for online sellers and consumers has been discussed at length.
Many believe that foreign investment in this sector can change the life of local merchants considerably. It is common knowledge that outdated policies (one of which is FDI restrictions) that govern ecommerce industry needs to be changed in order to make this flourishing industry a healthy and sustainable one. In fact archaic business policies remain one of the major challenges for ecommerce in India.
The new development definitely has a positive ring to it, especially when each party involved, be it central government or the state government, want provisions to protect the interest of domestic sellers, small retailers and SMEs when FDI becomes a reality. Do you think FDI in ecommerce is a good idea or a bad one? Please share.
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