The government recently permitted 100 percent foreign direct investment (FDI) in the marketplace format of e-commerce retailing, with a view to attract more foreign investments.

 

 

 

According to the press note issued by the Department of Industrial Policy and Promotion (DIPP) on FDI in e-commerce, FDI has not been allowed in inventory-based model of e-commerce.

 

Global e-commerce giants like Amazon and eBay are operating online marketplaces in India, while Indian players like Flipkart and Snapdeal have foreign investments even as there were no clear FDI guidelines on various online retail models.

 

Alok Patnia written this article on yourstory.com analyzing the  100% FDI allowed in e-commerce sector.

Alok Patnia, CEO of Taxmantra.com has been actively involved in the start-up sector of India. He has been advising and mentoring a huge number of start-ups by providing them with necessary hand holding with regards to various issues like Entity Structuring, Funding, Tax and Regulatory compliances and allied issues. He is great insights on the business starting-up and maintenance issues. He is a qualified Chartered Accountant having post qualification exposure with Ernst and Young and KPMG at Bangalore.