Sellers seek FDI in inventory-based model of e-commerce for exports

Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi on Friday said that the e-commerce industry has suggested the government to allow FDI in inventory-based model of online trade for export purposes only. The extant policy does not allow FDI foreign direct investment in the inventory-based model of e-commerce. It is allowed in firms operating through a marketplace model only.

Sarangi said that the e-commerce stakeholders have asked the department for the promotion of industry and internal trade (DPIIT) to relook the FDI policy on this issue.

"For export purposes, if these (rules) could be revisited, is something that we are requesting the DPIIT to examine and explore... and this could be one step forward for creating the e-commerce export zones that DGFT and its team has been working on," Sarangi said at a conference organised by FICCI. He also said the directorate is working with the Department of Revenue to see if there could be a scheme like 'composition levy scheme' for smaller players so that this mandatory GST could be waived till they attain a certain threshold of export value.