ENA Sectors 2023-12-06 13:38:01 <p><span style="font-size:14px"><strong>New Delhi, Dec 6 (KNN)</strong> The government has decided to permit Foreign Direct Investment (FDI) in inventory-based e-commerce models, with a focus exclusively on export markets, reported FE.</span></p> <p><span style="font-size:14px">An official source told FE that the Finance and Commerce &amp; Industry ministries have aligned on this stance. However, they have identified some potential challenges in implementing the proposed policy and are actively seeking solutions to overcome them.</span></p> <p><span style="font-size:14px">A lot of background work is required at multiple levels to enable the functioning of the proposed new framework for the sector, the official told FE on Tuesday.</span></p> <p><span style="font-size:14px">Currently, FDI is prohibited in e-commerce when the platform operators function as sellers. However, a foreign manufacturer is allowed to sell its India-manufactured products via e-commerce retail.</span></p> <p><span style="font-size:14px">Another avenue for FDI in retail e-commerce involves single-brand retail trading entities operating physical stores</span></p> <p><span style="font-size:14px">The policy (permitting FDI in e-commerce meant for exports) is in the final stages. There is an understanding that this restriction (on holding of inventory by e-tailers) should not be applicable to exports, the official who wished to remain anonymous told FE, while declining to give a timeline on when the policy could be formalised.</span></p> <p><span style="font-size:14px">The government expects exports through e-commerce would account for USD 200 billion of the USD 1 trillion worth of goods exports from India by 2030.</span></p> <p><span style="font-size:14px">Granting increased export freedom to major e-commerce players such as Amazon would empower domestic producers, including farmers and small artisans, as well as product owners, to tap into global markets, reported FE.</span></p> <p><span style="font-size:14px">It does not create any competition with the local players or small retailers so it is a win-win for everyone, the official added.</span></p> <p><span style="font-size:14px">The easing of rules would require amendment in the Press Note 3 (2016 series) of the Department for Promotion of Industry and Internal Trade.</span></p> <p><span style="font-size:14px"><em><strong>(KNN Bureau)</strong></em></span></p> 35785 https://knnindia.co.in/news/newsdetails/sectors/fdi-boost-on-the-horizon-for-export-linked-e-commerce 2023-12-06 13:38:01 knnindia.co.in