Lok Sabha Question No. 3854 (UNSTARRED), answered on 2019-12-11
Subject: Impact of e-Commerce Business on Retail Traders
Ministry: COMMERCE AND INDUSTRY
Asked by: Satyadev Pachauri

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 3854.

TO BE ANSWERED ON WEDNESDAY, THE 11 TH  DECEMBER, 2019.

## IMPACT OF e-COMMERCE BUSINESS ON RETAIL TRADERS

## 3854.  SHRI SATYADEV PACHAURI:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

वाणिज्य

## एवं उद्योग मंत्री

- (a) whether there is an increase in e-commerce business and if so, the details thereof;
- (b) whether there is an apprehension that the increasing e-Commerce business will bring down the sales of shopkeepers and retail traders; and
- (c) if so, whether the Government has made/is making any policy on investment in the increasing e-Commerce business in order to safeguard the interests of consumers and the retail traders; and
- (d) if so, the details thereof and if not, the reasons therefor?

## ANSWER

## वाणिज ् य एवं उद्योग मंत्री ( श्री पीयूष गोयल ) THE MINISTER OF COMMERCE & INDUSTRY (SHRI  PIYUSH GOYAL)

- (a): At  present  no  such  data  is  collected,  however  as  per  the  National Association  of  Software  and  Services  Companies  (NASSCOM);  'The Information  Technology  -Business  Process  Management  Sector  in India:  Strategic  Review  2019'  report,  Indian  e-commerce  market registered an estimated growth of approximately 24% in 2018 to reach USD  43  billion.  Further,  it  is  estimated  that  it  will  reach  to  USD  54 billion  in  2019.  Further,  as  per  information  available  in  Ministry  of Corporate  Affairs'  (MCA21),  there  are  256  e-Commerce  companies registered with Activity Code (NIC-2004) amongst (51902 & 52512), of which 110 are active e-commerce companies.
- (b): No such study has been undertaken by the Government. As per FDI policy, 100% FDI under automatic route is permitted in only marketplace model of e-Commerce(where products of other suppliers/vendors  only  can  be  sold).  Inventory  based  model  of  eCommerce is not permitted. E-Commerce is rather expected to provide better outreach to Indian retail traders for selling their products.

| (c) & (d):   | The FDI policy on e-Commerce, first pronounced through Press Note 2 of 2000, permitted 100% FDI in B2B e-commerce activities. In order to provide better clarity and to ensure implementation of policy in letter and spirit, Press Note 3 of 2016 and Press Note 2 of 2018 were issued. This has been done keeping in mind Indian interest and after stakeholder discussions. Any violation of FDI regulations are covered by the penal provisions of the Foreign Exchange Management Act(FEMA). Further, the draft e-commerce policy was put up on the public domain   |
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