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FDI

FDI in e-commerce: Snapdeal, ShopClues, Shop101 support Feb 1 deadline

FDI

The deadline for e-commerce firms to comply with FDI rules is around the corner. While foreign entities such as Amazon and Walmart are trying to convince the Indian government to extend the deadline, domestic merchants along with sellers and traders bodies support the regulation.

Now, home-grown e-commerce firms such as Snapdeal, ShopClues, and Shop101 have also come in support of the government’s diktat and oppose any extension. This is the first instance when local e-tailers directly opposing the extension in the deadline.

According to an ET report, these firms have written to the Department of Industrial Policy and Promotion and commerce minister Suresh Prabhu and lauded the government to clarify the rules on FDI in e-commerce.

Small retailer Limeroad, Wooplr, and Fynd have also approached the ministry while some online-only brands have raised concerns over the escalating issue.

Snapdeal’s co-founder Kunal Bahl said that Press Note 2 is important to ensure growth and survival of India’s small businesses through genuine online marketplaces. On the other hand, ShopClues co-founder Sanjay Sethi denies the argument that new law will hurt SMEs.

Meanwhile, Walmart and Amazon also lobbied US government to make the new e-commerce policy – a bilateral trade issue.

Following the matter, Rashtriya Swayamsevak Sangh (RSS) had written to Prime Minister Narendra Modi saying that if regulations aren’t enforced on the due date then it will hurt the interest of 130 million small Indian entrepreneurs.

If comes, the revised policy will limits e-commerce marketplaces to have maximum sales of 25 per cent from a single seller and bans them from investing in vendors. Also, it forbids the group company striking exclusive partnership with brands.

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