E-commerce norms to provide level playing field, clarity: Commerce Minister Nirmala Sitharaman

NEW DELHI: Commerce and industry minister Nirmala Sitharaman has said that the new guidelines for e-commerce will provide a level playing field to both online and offline stores by bringing in greater clarity.

Stating that the market is free and the government does not believe in interfering in it, the minister on April 4 said, “Somewhere we have to ensure Indian players and Indian market situation does not get unnecessarily skewed to distort any free trade practices.”

She was speaking on the sidelines of the CII Global Exhibition on Services.

Her statement comes a week after the government allowed 100% foreign direct investment in online retail of goods and services under the ‘marketplace model’ through the automatic route.

“The clarification which we have issued has only resulted in bringing in level playing field (to) those in the bricks and mortar bracket of the commerce. E-commerce has been encouraged but obviously it’s not going to restrict the consumer,” she said.

As per new rules notified by the government, marketplaces are prohibited from offering discounts and capping total sales originating from a group company or one vendor at 25% so as to put an end to discount wars among e-tailers.