In what is largely a status-quo ruling from the Indian government's Department of Industrial Policy and Promotion, FDI in B2C e-commerce has been disallowed in India, while FDI in marketplaces has been allowed to continue. A copy of the clarification and guidelines from the Indian government here. In that sense, this PTI story, which gives the impression that the government has allowed FDI in ecommerce marketplaces is inaccurate, since 100% FDI in marketplaces has always been allowed in India: how else did eBay buy Baazee.com? Marketplaces connect buyers with sellers, and several marketplaces, starting from Rediff (via NASDAQ), to Snapdeal, Paytm and Shopclues, and even the now defunct IndiaPlaza, have raised money from investors in the past. Lest we forget, Flipkart apparently switched to the marketplace model for compliance reasons in 2013, and Amazon India, as an ecommerce marketplace company owned…
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