The Department of Industrial Policy and Promotion (DIPP), under the commerce ministry, has reportedly ruled out foreign direct investments (FDI) in the e-retailing of domestically produced goods, dispelling concerns raised by those against such a move.
DIPP secretary Ramesh Abhishek, speaking at a seminar organised by the Swadeshi Jagaran Manch (SJM), a wing of the Rashtriya Swayamsevak Sangh (RSS), said that there are no plans to allow foreign investments in the business-to-consumer (B2C) e-commerce sector for goods produced in India, reported CNBCTV18.com.
"Since FDI is not allowed in multi-brand retail, we cannot allow it in e-commerce ventures selling goods produced in India,” the website quoted the secretary as saying.
“We know that allowing FDI in made in India products, would be equal to allowing FDI in the retail sector,” The Economic Times quoted Abhishek as saying.
That apart, complaints on FDI policy violations with reference to Press Note 3 must be probed, Abhishek said, adding that he has discussed the objections raised against e-tailers with the finance secretary.
A draft of the proposed e-commerce policy, tabled by the department of commerce recently, had recommended permitting 49 percent FDI in the e-retail of locally produced goods via online platforms that could be allowed to own limited inventory.
The FDI Press Note 3, of 2016, mandates that foreign-funded e-retailers cannot influence the pricing of goods and services.
India has attracted $230 billion in FDI in the last four years and the ‘Invest India’ campaign is facilitating foreign investments worth $90 billion, Abhishek told the Taiwan-India Industrial Collaboration Summit this week, the PTI reported.
With inputs from PTI
Firstpost is now on WhatsApp. For the latest analysis, commentary and news updates, sign up for our WhatsApp services. Just go to Firstpost.com/Whatsapp and hit the Subscribe button.
Updated Date: Aug 29, 2018 20:59:04 IST