|  |  |  |  | 

Business Exclusive Headlines News

Retail e-commerce companies demand FDI

New Delhi, Sep 26 () : Retail e-commerce companies have come forward to demand opening this sector after India’s condition to allow FDI in retail but not allow investment in e-commerce.

The Union Government notification has stated that e-commerce companies which deal directly with the customer (B2C) are not permitted to get direct investment from foreign investors but those e-commerce companies  which deal from business to business (B2B) are permitted to get investment from abroad.

Those B2C companies which already have foreign capital will have to drop it since investments received under the new FDI scheme need to obey with FDI policy which does not permit FDI in B2C e-commerce, said officials. Those rooting for FDI in e-commerce is CII Director General Chandrajeet Banerjee, since it would attract modern technology which needs capital from investors.

Rating agencies and audit firms PWC India Executive feel the government should consider separate guidelines for FDI in e-commerce activities.

In a trend where global companies are moving towards business models like e-commerce and m-commerce (mobile commerce) the retail sales needs FDI for enabling framework. If this is not favourable, it will impact several players.

BJP spokesperson Ravi Shankar Prasad said that if they are voted to power, the FDI in retail would be scrapped. When he was asked about BJP manifesto in 2004 including 26% FDI in retail, he said that a new manifesto for today’s times is on its way after the national meet now going on.

Akali Dal, a NDA partner said it would welcome FDI if traders are protected which Ravi Shankar played down saying it was of no consequence since BJP had allowed FDI in media then.

BJP’s leader and former minister Arun Shourie have already said FDI in retail is necessary and diesel hike long overdue. Nitin Gadkari addressing the BJP conclave in Surajkand said UPA will not complete its tenure which Ravi Shankar said was not an attempt to destabilize the Government but only that the party is ready for snap polls.