As per the ‘Consolidated FDI Policy Circular 2015’ issued by the Department of Industrial Policy and Promotion (“DIPP”), FDI upto 100% under automatic route is permitted in Business to Business (“B2B”) e-commerce. However, no FDI was permitted in Business to Consumer (“B2C”) e-commerce.
The DIPP, through Press Note No. 3 (2016 series) dated 29th March 2016, has permitted, with immediate effect, FDI in B2C e-commerce subject to certain conditions.
The notification, which is expected to redefine a section of the online retail industry in the country, was long awaited by e-commerce firms – both Indian companies such as Flipkart and Snapdeal, and subsidiaries of global giants such as Amazon India and Ebay, and several brick-and-mortar companies that use the marketplace model.
This article will provide you with detailed conditions subject to which the FDI has been permitted in B2C e-commerce.