PHDCCI urges govt to issue clarification on FDI policy in e-commerce sector

Industry body PHDCCI has urged the government to issue clarifications on the foreign direct investment (FDI) policy in the e-commerce space and plug loopholes to promote the sector.

In a letter to Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Anurag Jain, the chamber said the loopholes in the current policy are being exploited by online retailers to carry out inventory-based e- commerce/multi-brand retail trade in the garb of running marketplace platforms.

"We, therefore, urge you to release the clarification to the FDI policy in e-commerce by plugging the loopholes," it said.


The present policy allows 100 per cent FDI in marketplace e-commerce platforms and prohibits foreign direct investment in inventory-based models of e-commerce.

A report of the Parliamentary Standing Committee on Commerce has made some key observations and recommendations in the interest of the Indian consumer and other stakeholders who not only influence the consumers' choices in e-commerce but also shape the e-commerce ecosystem, it added.