In order to ensure due compliance with the FDI policy on e-commerce, the commerce and industry ministry has issued norms putting in place certain conditions.
A better enforcement of FDI policy in the e-commerce sector will contribute significantly to growth of this sector over medium and long term, Minister of State for Commerce and Industry C R Chaudhary told Parliament.
"The FDI policy on e-commerce has remained unchanged. Better enforcement of this policy will contribute significantly to growth of this sector over medium and long term," he said in a written reply.
In order to ensure due compliance with the FDI policy on e-commerce, the ministry has issued norms putting in place certain conditions, which are effective from February 1.
As per condition, "An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity."
Another condition, "e-Commerce marketplace entity will not mandate any seller to sell any product exclusively on its platform only."
The FDI policy on e-commerce permitted 100 per cent FDI in B2B e-commerce activities.
According to media reports, global firms like Flipkart and Amazon had sought extension of this deadline, but the government rejected that.
Stakeholder consultations on creating a framework for National Policy on e-Commerce with representatives from government ministries, departments, Reserve Bank of India, industry bodies, e-commerce companies, telecom companies, IT companies and payment companies have been held.
"Issues regarding the e-commerce sector are regularly reviewed by the government," said the minister.
Source: PIB, media reports