Govt likely to allow FDI in e-commerce next month

FDI in e-commerce will pave the way for global majors like Amazon, eBay to expand their business.

By: Reuters | New Delhi | Published:June 4, 2014 3:45 pm
India currently bans global online retailers from selling goods directly to customers. India currently bans global online retailers from selling goods directly to customers.

Prime Minister Narendra Modi’s government could allow foreign direct investment in India’s e-commerce sector as early as next month, paving the way for global online retailers such as Amazon to expand their business, people with knowledge of the matter told Reuters.

A more robust online retail sector will spur manufacturing and help an economic revival, said the people, who are privy to discussions within the new government. An announcement is expected in next month’s budget.

India currently bans global online retailers from selling goods directly to customers but allows them to own 100 per cent of a marketplace business, where third-party suppliers can use their platform. Both Amazon and eBay use such a platform to operate in the country.

When asked about the decision, a spokesman for India’s commerce and industry ministry declined to comment.

Video of the day

For all the latest Business News, download Indian Express App

    Live Cricket Scores & Results