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India Looks to Ratify 100% FDI for E-Commerce Operators

India is considering permitting 100% Foreign Direct Investment (FDI) for companies operating in the e-commerce sector. The move, currently being reviewed by the country's Finance Ministry, is aimed at rationalising legislation with regard to FDI. At present, while 100% FDI is permitted for single brand and cash-and-carry retail businesses, as well as for wholesale businesses, it is specifically excluded in the online sector. This has resulted in a number of E-commerce companies in India facing potential legal action for breaching investment rules.

India's E-commerce sector is currently valued at US$8 billion. According to a report by Goldman Sachs, the sector could be worth as much as US$100 billion by 2020.

For Further Information, Please See:

DIPP pushes for 100% FDI in marketplace e-tail

Content provided by Picture: HKTDC Research
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