Domestic e-commerce firms Snapdeal, Shopclues, Shop101 and others have written to the Department of Industrial Planning and Policy (DIPP) and the Commerce Minister Suresh Prabhu opposing the deadline extension of February 1, when the new FDI in e-commerce policy comes into effect. This was reported by the Economic Times. According to the report, industry officials have told ET that the government was looking at a possible extension of 2 months. The companies have also supported the government for clarifying the rules on FDI in e-commerce. Small online sellers like Limeroad, Wooplr, and Fynd have also written to the ministry, raising concerns over any deadline extension. The FDI in e-commerce policy disallows e-commerce players to control inventory of the vendors. Additionally, vendors which are owned and controlled by the e-commerce company cannot trade on the marketplace. The policy will impact global e-commerce players like Walmart-owned Flipkart and Amazon, who would have to change their business structures to comply with the new policy, which was announced late in December. Traders' bodies have opposed deadline extension Traders' bodies CAIT and Swadeshi Jagran Manch have voiced their opposition against any deferral of the deadline. Earlier this month, Amazon and Flipkart asked that the deadline be extended by 4 and 6 months respectively, leading to traders' opposition. It was reported last week that the US government has voiced its concerns over the new regulations to Indian government officials, and was pushing for the regulation to become a bilateral issue between US and India. Immediately after, CAIT wrote…
