WHAT ABOUT FDI IN E-COMMERCE
Author: Avneet Singh, July 11, 2015 – Posted in: Economics, Foreign Trade – Tags: ,

WHAT ABOUT FDI IN E-COMMERCE

India today is one of the widest emerging market for the in e-commerce either it may B2B or B2C, we have many e-commerce companies to full-fill our daily needs. For instance, if we need cloths there are many websites from which we can order from, as FLIPKART, AMAZON and many more, thus being a good sector to be think about for enhancing it by taking out a economic Reform, FDI in e-commerce.

DIPP the regulatory board for FDI in India make some questions for the policies which are as follows….
1, Should the FDI be allowed in B2C e-commerce?
2, Should it be open for all products or only for the non-food products?
3, Should there be a minimum capitalism limit?
4, Should there be a domestic sourcing limit or if yes then how much?
5, How will retail sale under MBRT be restricted to states that have agreed to open fronted stores?
6, What should be the the routes and Caps be in FDI in B2C commerce companies? Should it be automatic up to 50%?
7, What are the likely benefits to Indian Economy?
8, What should B2C e-commerce encompass: goods, services or intellectual property?

The Answer for the question is India needs this policy of FDI is always depends on the pros and cons of the policy on our econnomy.

Pros…
1, It will provide the capital for developing the infrastructure.
2, It will promote the manufacturing sector as well, as these players took the goods directly from the manufacturers.
3, It will increase the outreach of the global best practices.
4, It will increase the competition among the domestic players, which in turn improves the consumer services

cons…
1, If government also came with the policy of Multi-brand retail it will contradict the policy, and will make other policy a futile.
2, Policy may impact small-time brick and mortar stores.
3, It may have the adverse effect on the domestic industry.’
4, Foreign players may dump their cheaper quality product in the market.

 

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