NEW DELHI | MUMBAI: The government on Tuesday clarified that 100 per cent foreign direct investment (FDI) is allowed in online marketplaces, a move that will ostensibly come as a relief to ecommerce companies such as Flipkart, Amazon India and Snapdeal but the conditions imposed have been hailed as a victory by their brick-and-mortar rivals. Critically, a clause bars marketplaces from offering discounts on their own
These have to come from the vendors on the platforms and the policy also see to end "predatory pricing" by online companies.
Overseas investment will be automatically permitted subject to certain riders such as the above, the government said in a press note, clearly defining 'marketplace'.
This ends the uncertainty over the business model being used by India's biggest online retailers hich has been challenged in court by brick-and-mortar stores. The FDI policy had previously left the term undefined.
The government also appears to have taken a firm stance against deep online discounting to protect nei ..
Source : Economics times
These have to come from the vendors on the platforms and the policy also see to end "predatory pricing" by online companies.
Overseas investment will be automatically permitted subject to certain riders such as the above, the government said in a press note, clearly defining 'marketplace'.
This ends the uncertainty over the business model being used by India's biggest online retailers hich has been challenged in court by brick-and-mortar stores. The FDI policy had previously left the term undefined.
The government also appears to have taken a firm stance against deep online discounting to protect nei ..
Source : Economics times
Sign up here with your email
ConversionConversion EmoticonEmoticon