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India Allows 100% FDI In B2B E-Commerce; Restricts Investments In B2C

A consolidated policy on Foreign Direct Investment in India released today (pdf) finally addresses one of the key questions around investment in e-commerce ventures in India, and also clarifies on the distinction between wholesale and retail ventures. The policy allows 100% FDI in business to business e-commerce ventures, but not in retail trading ventures. B2B ventures are those which fulfill any one of the following four conditions: (a) Full records indicating all the details of such sales like name of entity, kind of entity, registration/license/permit etc. number, amount of sale etc. should be maintained on a day to day basis. (b) Wholesale Trading of goods would be permitted among companies of the same group. However, such WT to group companies taken together should not exceed 25% of the total turnover of the wholesale venture (c) WT can be undertaken as…

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Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

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