Home / Knowledge / News / Apparel/Garments / India's FDI policy excludes B2C ecommerce
India's FDI policy excludes B2C ecommerce
24
Sep '12
Business-to-consumer (B2C) ecommerce is not included in the Government of India’s new policy to allow up to 51 percent foreign direct investment (FDI) in multi-brand retail trading.
 
The notification issued by the Government makes it clear that retail trading through ecommerce will not be permissible for firms with FDI that are engaged either in single-brand or multi-brand retail activity.
 
It implies that a global multi-brand retailer like Tesco can invest up to 51 percent in a joint venture for setting up stores in Indian cities with a population of more than one million, but it cannot sell its products online through the same venture.
 
It also implies that an India-based online retailer cannot attract FDI in its B2C business, nor foreign online retail firms can do their business in India.
 
The move might come as a big relief for India’s ecommerce industry, but experts say, foreign ecommerce companies can have their operations in India by setting up a multi-tier corporate structure.
 
For example, if a joint venture, which is Indian-owned and managed, creates another subsidiary firm to sell its products online, it would be permissible under the existing rules.
 

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 29th Mar 2017

Indonesian garment exports to remain stable in 2017: API

Garment exports from Indonesia are likely to remain stable this year...

Courtesy: Carrington

Apparel/Garments | On 29th Mar 2017

Carrington Workwear signs JV with TMG Textiles

Carrington Workwear, one of the largest producers of workwear fabrics ...

Apparel/Garments | On 29th Mar 2017

Myanmar CMP garment exports to touch $2.2bn in 2017

Cutting, making and packaging (CMP) garment exports from Myanmar are...

Interviews View All

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search