Govt working on e-commerce guidelines

02 Jun '15

2 min read

The government is working on guidelines for e-commerce sector in the backdrop of ongoing tussle between online and offline retailers, according to media reports quoting a top government official has said.

The government is aware of the issues between e-commerce retailers and brick-and-mortar outlets and it would "shortly address" this by evolving guidelines through FDI policy, department of industrial policy and promotion (DIPP) joint secretary Atul Chaturvedi said.

The DIPP is "working on guidelines to address the issue of ongoing tug of war between e-commerce retailers and their counterparts in bricks and mortar," he said.

However, the government is unlikely to regulate the e-commerce entities since a clear-cut policy on this front is in place, Chaturvedi said while addressing a session on 'Ease of Doing Business and the Government Policy' organised by PHD Chamber of Commerce and Industry (PHDCCI).

At present, 100 per cent foreign direct investment (FDI) is allowed only in business-to-business (B2B) e-commerce and not in the retail segment.

Traders body CAIT had called for a probe in the business model and trade practices of e-commerce companies to find out how they are offering huge discounts.

Recently, Commerce and Industry Minister Nirmala Sitharaman has discussed various issues related to FDI in the e-commerce sector with several stakeholders, including Flipkart, Snapdeal and industry associations.

According to estimates, sector's market size in the country is at around $5 billion annually and online shopping is expanding at a fast pace. (SH)

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