Ahead of the 2014 general elections starting next month, commerce and industry minister Anand Sharma has said he is in favor of allowing 100% FDI in the e-commerce sector, in an interview with The Indian Express. Sharma mentions that they are looking to relax the existing FDI guidelines in the business-to-consumer (B2C) e-commerce segment and are currently awaiting the approval of Election Commission. This approval is necessary since the commission has already announced the election schedule, following which the model code of conduct has come into effect. This prohibits the existing government from making any policy decisions which might tilt the polls in their favor. Remember that the Government had earlier approved a 51% FDI in multi-brand retail in September 2012, however it had later clarified that the policy does not extend to e-commerce, which led to several companies opting for a dual company route (Eg: Flipkart - WS Retail or more recently Koovs - Marble E-retail) and shifting to a marketplace model where foreign investments are allowed in the country. Discussion Paper On FDI In E-Commerce Earlier in January, Department of Industrial Policy and Promotion (DIPP) had floated a discussion paper on e-commerce in India, mentioning that several MNCs, industry bodies and an international council have made a case for allowing FDI in B2C e-commerce while a national body of traders had strongly opposed this move. In its submission, E-commerce venture Yebhi had sought 100% FDI in e-commerce of all goods, except for food (Read: Medianama’s submission on FDI in E-commerce sent to the central government). Amazon India which opened its India marketplace in June…
