DPIIT to meet trade unions, industry groups on FDI in e-commerce

The department for promotion of industry and internal trade (DPIIT) will from Wednesday hold talks with trade unions, industry associations and government ministries to discuss Foreign Direct Investment (FDI) in e-commerce.

DPIIT officials will meet Confederation of All India Traders (CAIT), Retailers Association of India, Laghu Udyog Bharti, the Confederation Indian Industries (CII), Internet and Mobile Association of India (IAMAI). They will separately hold talks with the Federation of Indian Chambers of Commerce and Industries (FICCI), and the ministries of finance, corporate affairs, consumer affairs, Competition Commission of India (CCI). The meetings will be on March 17, 19 and 23.

Officials are likely to meet over a dozen e-commerce companies, including Amazon, Flipkart, Snapdeal, Paytm Mall, Swiggy, among others on March 25, a person aware of the development said. DPIIT secretary Guruprasad Mohapatra will chair the meeting.

Officials will discuss various aspects of the Press Note 2 issued by the department two years ago. In December 2018, DPIIT had issued the note on FDI guidelines aimed at tightening norms for online retailers, after the government received complaints against these platforms on how they were flouting the FDI policy by not only influencing product prices but also indirectly moving towards an inventory model.

DPIIT had then said that Press Note 2 was issued for better enforcement of an earlier note that banned FDI in the inventory model of e-commerce.

Domestic trader groups have complained against e-commerce behemoths such as Amazon and Flipkart, alleging that they have been flouting the FDI policy norms by offering deep discounting and promoting preferential sellers, among others.

It is learnt that the government could come up with fresh clarifications on Press Note 2 but only after considering the viewpoint of all relevant stakeholders. “We need to understand the view of all relevant parties before coming with clarifications, if any,” a senior government official said.

“We also want the e-commerce policy to see the light of the day as urgent modalities and parameters are required in the e-commerce business. As far as Press Note is concerned, the intent of the government  has to be implemented in letter and spirit,” CAIT Secretary General Praveen Khandelwal.