It looks like there is finally some progress on the Indian government's stance towards foreign direct investment (FDI) in the e-commerce segment, with the Department of Industrial Policy and Promotion (DIPP) releasing (pdf) a discussion paper on e-commerce in India. The department has invited comments, views or suggestions from interested parties until January 30, 2014. You can download the discussion paper here. Industry Bodies & MNCs Favor FDI In E-Commerce But Traders Body Oppose It DIPP mentions that it has received number of representations from various stakeholders in recent months. Several MNCs, industry bodies and an international council have made a case for allowing FDI in B2C e-commerce which is currently prohibited as per the policy guidelines. Earlier, reports had suggested that NASSCOM was in favor of FDI in e-commerce as long as the government makes local sourcing mandatory to a certain amount. Assocham had also requested the government to withdraw the ban and had apparently sought support from the Telecom and IT minister Kapil Sibal. One of the MNCs has also suggested a separate policy framework for FDI in e-commerce which relies on functionality-based treatment of e-commerce platforms to bring much-needed parity between e-commerce and the recently liberalized brick & mortar retail trade policies. On the other hand, DIPP notes that a national body of traders has strongly opposed this move, saying that the Indian market is not yet ready to open up e-retail space for foreign investors. It says allowing FDI in this sector will have a disastrous impact on the industry leading to monopolies in e-commerce, manufacturing, logistics, and retail sector, causing large scale unemployment.…
