Will foreign direct investment in eCommerce be permitted in the near future?
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Asked by Question Bot06/Nov/20121 answer
1 Answer
F
Faisal Khan
Answered 06/Nov/2012
It was a head scratching moment, when India allowed Brick-and-Mortar FDI (Foreign Direct Investment for 51%) and yet gave the cold shoulder to eCommerce outfits, who cannot tap in for FDI.
In this day and age of Information Technology, in which India excels at, it is almost downright criminal not to allow FDI for eCommerce enabled outfits.
Why the brick and mortar line was towed and not the ecommerce one? No one can say for sure. The government sees the B-and-M as a larger and more pressing need and have aptly addressed it. I suspect, that the Cabinet Committee on Economic Affairs (CCEA would be hard-pressed and lobbied to allow FDI in eCommerce. The almost certainty which was that Amazon would start operations in India this year, is now on hold (until things become more clear).
Currently there isn't a viable center for Amazon to start operations in South Asia, and India is the logical choice for a regional hub, but with this upsetting news, I am sure a lot of lawyers and lobbyists are trying to ensure that this silly mistake (IMHO) is reversed.
In this day and age of Information Technology, in which India excels at, it is almost downright criminal not to allow FDI for eCommerce enabled outfits.
Why the brick and mortar line was towed and not the ecommerce one? No one can say for sure. The government sees the B-and-M as a larger and more pressing need and have aptly addressed it. I suspect, that the Cabinet Committee on Economic Affairs (CCEA would be hard-pressed and lobbied to allow FDI in eCommerce. The almost certainty which was that Amazon would start operations in India this year, is now on hold (until things become more clear).
Currently there isn't a viable center for Amazon to start operations in South Asia, and India is the logical choice for a regional hub, but with this upsetting news, I am sure a lot of lawyers and lobbyists are trying to ensure that this silly mistake (IMHO) is reversed.