Home / Knowledge / News / Apparel/Garments / 'If not FDI, rollout GST' - Indian ecommerce retailers
'If not FDI, rollout GST' - Indian ecommerce retailers
26
Sep '12
Though the Indian government has given a nod to 51 percent foreign direct investment (FDI) in multi-brand retail, it has not done so for the burgeoning Indian ecommerce industry. However, the ecommerce sector is demanding that the government urgently rollout Goods & Service Tax’ (GST).        

According to Forrester – an independent research firm, the overall ecommerce trade in India is expected to be around US $1.6 billion in 2012. This figure according to Forrester is expected to skyrocket five times to $8.8 billion by 2016.

Suneet Manchanda of India's first women’s only shopping website – Ladyblush says “We think that restricting FDI in online retailing is more out of compulsion than anything else, since FDI implementation is based on approval from the states and not the Central Government.

“As we understand today, certain states will allow FDI while others will not, and since etailing is a borderless transaction, restricting delivery of a consignment to a non-FDI state would have made it extremely complex and unattractive. However, We expect FDI in ecommerce to open up as soon as FDI is implemented across all states”.

Abhishek Goyal – CEO of fashion e-retailer fashion&You says, “We expect 51 percent FDI in ecommerce to be permitted very soon. The government has taken the first step in the right direction, although we too would have been pleased if it had been extended to our industry also.”

Abhishek adds, “Foreign ecommerce companies have been in business since the last 15 years, while in India it has come in to its own since the last 2-3 years. By opening the sector, they would have brought in a lot of expertise and also capital, which would result in the industry growing faster, with the consumer being the ultimate beneficiary”.

Manu Midha - Vice-President at Infibeam – a multi-product ecommerce retailer including apparels is of the opinion that most of the ecommerce retailers have already attracted investments from foreign venture capital investors. “However since the government has not allowed FDI from ecommerce retailers this time, retailers like Amazon, etc will still have to wait for some more time”, he explains.

He observes, “However, the Indian market is very different from those in the developed markets, which have high labour costs and makes ecommerce attractive. We in India, have a dual tax structure and since we have low labour costs, it makes sense for small stores to operate. Over and above we have various intermediates in the distribution structure”.

According to an expert on ecommerce who does not want to be identified, “The government has done right by not permitting, as these companies will not bring investments in to back-end as well as not be creating jobs in back-end. The government in its wisdom has allowed Indian ecommerce sites to become structurally strong, before giving the nod to FDI”.


Must ReadView All

Market share of Indian textile items expand in 13 nations

Textiles | On 11th Dec 2017

Market share of Indian textile items expand in 13 nations

Thirteen countries — Germany, France, Italy, the United States,...

Courtesy: EUBrasil

Textiles | On 11th Dec 2017

Euratex, ABIT welcome negotiations for EU-Mercosur FTA

European Apparel and Textile Confederation (Euratex) and the...

Most firms expect no change in investment plans: CII survey

Textiles | On 11th Dec 2017

Most firms expect no change in investment plans: CII survey

Despite visible optimism in Indian industry with the Confederation of ...

Interviews View All

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Shawn Honeycutt
Bolger & O'Hearn

‘The Indian market is interesting and rather persistent in seeking new...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Urmil Arya

Sushila International, a well established textile organisation established ...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Silvia Venturini Fendi
Fendi s.r.l

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

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

December 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.2%
No
12.1%
Skip
18.7%

Total Votes: 91

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.5%
No
30.8%
Skip
7.7%

Total Votes: 91

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.8%
No
9.9%
Skip
3.3%

Total Votes: 91

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.3%
No
8.8%
Skip
9.9%

Total Votes: 91


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search