No plans to allow FDI in inventory model: DIPP Secretary

New Delhi, Aug 29 (KNN) The Department of Industrial Policy and Promotion (DIPP) has said that there are no plans to allow foreign direct investment (FDI) in business to consumer (B2C) e-commerce players holding the inventory of various goods, even if such products are locally-made.

DIPP Secretary Ramesh Abhishek, while addressing a roundtable organized by the Swadeshi Jagran Manch (SJM) on the draft ecommerce policy, said on Tuesday that only in the retailing of food items produced in India is FDI allowed up to 100% through government approval, which will continue.

The department of commerce had in its recent draft ecommerce policy mooted up to 49% FDI in inventory-based ecommerce for 100% locally made goods for majority Indian-owned and Indian-controlled ecommerce ventures.

“There is no agreement there… it is not happening. There is no such intent,” said Abhishek.

SJM has called Walmart’s acquisition of Flipkart as “backdoor entry into multi-brand retail trade” and has even accused Flipkart of “illegally carrying on multi-brand retail trade through e-commerce” in violation of FDI regulations.