Government is planning 100% FDI in e-commerce retailing

The government is considering permitting 100% FDI in the market place format of e-commerce retailing with a view to attract more foreign investments.

The norms on foreign direct investment (FDI) in the sectors of e-commerce, and IT and ITeS are expected to be part of detailed guidelines, which would be rolled out soon by the government, sources said.

Last week, a group of senior officials from departments of DIPP, Corporate Affairs and Economic Affairs, among others, discussed these matters in great detail.

According to sources, the DIPP has suggested that 100% FDI should be allowed in "market place model of e-commerce" activities.

In such a model, the e-commerce company provides an online platform for buyers and a sellers.

At present, global e-tailer giants like Amazon and Ebay are operating online marketplaces in India while homegrown players like Flipkart and Snapdeal have foreign investments even as there are no clear FDI guidelines on various online retail models.

An e-commerce firm carries its business either through market place model or inventory based model.