'Manufacturing units can sell products through e-commerce'

06 Aug '15

2 min read

Manufacturing units set up through foreign direct investment (FDI) can sell their products through retail including e-commerce platforms without any additional approval.

This clarification was given by commerce and industry minister Nirmala Sitharaman in a written reply in Rajya Sabha, the upper house of Parliament.

Mentioning the steps taken for effective expansion and foreign investment promotion of e-commerce in India, Sitharaman said the present FDI policy provides up to 100 per cent FDI under the automatic route in B2B e-commerce activities.

In his Budget speech on 10 July 2014, finance minister Arun Jaitley said, “FDI in the manufacturing sector is today on the automatic route. The manufacturing units will be allowed to sell its products through retail including e-commerce platforms without any additional approval.”

As per regulation framed under the Foreign Exchange Management Act (FEMA) 1999, 100 per cent FDI is permitted under automatic route only in B2B e-commerce activities and not in retail trading.

FDI is also not permitted in retail trading, in any form, by means of e-commerce, for companies engaged in the activity of single/multi brand retail trading, the minister said. (RKS)

Fibre2Fashion News Desk – India

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