Indian government had started a discussion on FDI in e-commerce in January this year and it had invited comments, views and suggestions from interested parties. You can see our submission here. We asked e-commerce companies in India to send us their submissions to help with an open discussion on the topic. Here are the key points presented by Yebhi on the issue in their submission: Allow 100% FDI: To facilitate foreign investors to make substantial investments in the Indian market it would be very beneficial to allow 100% FDI. However the local industry appreciates the government’s efforts and would also suggest a 51% automatic route for FDI in business to consumer E-commerce. Allow everything in B2C e-commerce: B2C E-commerce should encompass all three; goods, services and intellectual property. With continuous technological advancements it will be difficult to create distinction between products and services as several products or goods are now available more in digital formats than the traditional physical format. Disallowing specific formats or excluding certain formats of products will create confusion. It will also exclude many independent creative producers of content and digital products access to online channels to promote their original ideas and creative content to larger audiences. FDI should not be allowed for non-food category: At this juncture it could be restricted to non-food products only. The market in India has a long way to maturity for marketing of perishable items through e-commerce. Link domestic sourcing limit to FDI: The sourcing limit could be based depending on the level of FDI. A…
