Budget 2014: Foreign companies manufacturing products in India can now sell online

NEW DELHI: Finance Minister Arun Jaitley announced in the Budget that foreign companies manufacturing products in India can sell their merchandise through the e-commerce route.

This will help a host of foreign retailers including Puma, Benetton, Marks & Spencer, Decathlon among others who source a portion of their products within India.

Foreign retailers have been demanding for foreign direct investment be allowed in India’s booming e-commerce market. Currently a host of foreign brands such as Puma, Steve Madden among others have been selling their products online through local franchisees.

Earlier this year, Decathlon, that operates a fully-owned single-brand retail subsidiary in India, had approached the government to allow it to sell products online that was subsequently not allowed by the government.