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Title: India's PM woos America with FDI in e-commerce sector

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India Second-Most-Preferred FDI Destination

Indian Prime Minister, Mr. Manmohan Singh on his current excursion to America, could talk about foreign investments in indian e-commerce sector. He is scheduled to meet Mr. Barack Obama and will address the United Nations Assembly. The officials in India are framing a proposal that allows 51% FDI in e-commerce ventures. This move will help in generating a level with FDI permitted in multi-brand retailing.

The level of progress made by the Indian government, in this regard, will surely help Mr. Manmohan Singh when he will hold discussions with top officials of American companies. Department of Industrial Policy and Promotion has conducted a study in order to have a better understanding of the industry, prior to moving a proposal. One of the officials of DIPP said that they are getting the documents ready for the e-commerce sector. On the basis of these documents, they will make efforts to formulate a policy to allow overseas investment in the sector.


Last year, the government did give a green signal to FDI in multi-brand retail, but at the same they clarified that this is not for the e-commerce sector. However, 100% FDI is permitted in B2B and e-commerce via automatic method. Nasscom has already discussed different aspects with DIPP, which advocated foreign direct investment in the e-commerce sector to support Indian ventures.

"As e-shopping is becoming more and more widespread, so the sales volume of online stores becomes much higher when compared to brick-and-mortar stores. The primary objective below is to reflect the growing eCommerce trend and its impact on the business. Constant innovation and customization of your website will diversify your trade." said Mr.K.Bhatia, Director of DietKart, India's leading Sports Nutrition store.

While the volume of online retail is growing by leaps and bounds, on a small base, with the majority of the companies still in their initial stages as they concentrate on user achievement. With not many companies able to maintain the much needed burn rates, some have either shut down or have been acquired. Amazon has outlined the way they want to operate, if FDI gets a nod. They will have deliveries in states and UTs that are open to foreign direct investment in multi-brand retail at present 12.

Foreign online retailers are eager to enter India because of the potential that the country has. The e-commerce industry in India has grown from $2.6 billion in 2009 to $6.3 billion in 2011 and further growing to $14 billion in 2012. As per a survey, there are 10 million online shoppers in India and the best part is that the number is growing at an impressive rate of 30%.

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India's PM woos America with FDI in e-commerce sector

Date Added: September 28, 2013 1:38 AM

Uploaded By: Lissa C.

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"america", "e-commerce sector", "fdi", "foreign investments", "india", "indian e-commerce sector", "pm", "retail"

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