 "DPIIT set to take up e-commerce FDI policy with e-tailers on Thursday")
The Union government on Thursday will meet executives from over a dozen companies, including Amazon and Flipkart, to address the facets of the foreign direct investment (FDI) policy on e-commerce.
The meeting comes amid several complaints from traders accusing global e-commerce giants of circumventing local laws. Any revision or clarification in foreign investment rules could result in tighter norms for these e-tailers.
“Press Note 2 issued by the Department for Promotion of Industry and Internal Trade (DPIIT) in December 2018 will be discussed threadbare. Officials (from DPIIT) have been meeting relevant stakeholders since March 17. They have been asked to submit their written views to the department,” a senior government official told Business Standard.
“The final call on any clarification or a revision to the policy will be taken by Commerce and Industry Minister Piyush Goyal,” said the official quoted earlier.
The meeting, chaired by DPIIT Secretary Guruprasad Mohapatra, will also see participation of Reliance Jio, Snapdeal, Paytm Mall, and Swiggy.
Last week, Goyal sent out a stern message to investors, urging them to adhere to the ‘spirit’ and ambit of the law, instead of finding ambiguities.
The minister also urged investors to not circumvent and misuse the provisions of the existing law as it leads to the government trying to plug loopholes by either amending the FDI policy or notifying the clarifications.
Independently, domestic trader bodies have been urging the government to initiate strict action against some e-commerce companies violating the FDI policy by offering deep discounting, promoting preferential sellers, and not providing a level playing field.
Top officials from DPIIT have already met industry, trader associations, and key ministries to discuss the FDI policy on e-commerce.
The meeting comes amid several complaints from traders accusing global e-commerce giants of circumventing local laws. Any revision or clarification in foreign investment rules could result in tighter norms for these e-tailers.
“Press Note 2 issued by the Department for Promotion of Industry and Internal Trade (DPIIT) in December 2018 will be discussed threadbare. Officials (from DPIIT) have been meeting relevant stakeholders since March 17. They have been asked to submit their written views to the department,” a senior government official told Business Standard.
“The final call on any clarification or a revision to the policy will be taken by Commerce and Industry Minister Piyush Goyal,” said the official quoted earlier.
The meeting, chaired by DPIIT Secretary Guruprasad Mohapatra, will also see participation of Reliance Jio, Snapdeal, Paytm Mall, and Swiggy.
Last week, Goyal sent out a stern message to investors, urging them to adhere to the ‘spirit’ and ambit of the law, instead of finding ambiguities.
The minister also urged investors to not circumvent and misuse the provisions of the existing law as it leads to the government trying to plug loopholes by either amending the FDI policy or notifying the clarifications.
Independently, domestic trader bodies have been urging the government to initiate strict action against some e-commerce companies violating the FDI policy by offering deep discounting, promoting preferential sellers, and not providing a level playing field.
Top officials from DPIIT have already met industry, trader associations, and key ministries to discuss the FDI policy on e-commerce.
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