Lok Sabha Question No. 35 (UNSTARRED), answered on 2019-02-04
Subject: FDI Policy for e-Commerce
Ministry: COMMERCE AND INDUSTRY
Asked by: Tejpratap Singh,Yadav, L.R. Shivaramegowda, ANJU BALA

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

## LOK SABHA

UNSTARRED QUESTION NO. 35.

TO BE ANSWERED ON MONDAY, THE 4 TH  FEBRUARY, 2019.

## FDI POLICY FOR e-COMMERCE

35. SHRI TEJ PRATAP SINGH YADAV: SHRI L.R. SHIVARAME GOWDA: SHRIMATI ANJU BALA:

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

## वाणिज्य एवं उद्योग मंत्री

- (a) whether the Government has recently announced changes in Foreign Direct Investment (FDI) policy for e-Commerce;
- (b) if so, the details thereof;
- (c) whether the e-retailers have sought more time as they complained of being not consulted while framing the policy by the Government;
- (d) if so, the details thereof including the reaction of the Government thereto; and
- (e) the  steps  being  taken  by  the  Government  for  regulation  and  growth  of e-Commerce industry in the country?

## ANSWER

## वाणिज् य एवं उद्योग मंत्रालय में राज् यमंत्री (श्री सी.आर. चौधरी) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI C.R. CHAUDHARY)

- (a) & (b): In order to ensure due compliance of the FDI policy on e-Commerce, Press Note 2 (2018) has been issued. It puts in place certain conditions which shall come into effect from 01 February, 2019. These conditions include:
- (i) An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its  inventory  by  e-commerce  marketplace  entity  or  its  group companies,  will  not  be  permitted  to  sell  its  products  on  the platform run by such marketplace entity.
- (ii) e-Commerce marketplace entity will not mandate any seller to sell any product exclusively on its platform only.

| (c) & (d):   | Representations have been received to defer the implementation of Press Note 2 (2018). The FDI policy on e-Commerce, first pronounced through Press Note 2 of 2000, permitted 100% FDI in B2B e-commerce activities. With a view to provide clarity to the extant policy and after extensive stakeholder consultations, guidelines for FDI on the e-commerce were issued vide Press Note 3 (2016). In order to provide further clarity to FDI policy on e-commerce, Press Note 2 (2018) has been issued.   |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (e):         | Stakeholder consultations on creating a framework for National Policy on e-Commerce with representatives from Government Ministries/Departments, Reserve Bank of India, Industry bodies, e-Commerce Companies, Telecom Companies, IT Companies and Payment Companies have been held. Issues regarding the e-Commerce sector are regularly reviewed by the Government.                                                                                                                                      |

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