Business Standard

Govt may not allow FDI in online firms selling via inventory-based model

Several complaints against e-tailers violating the FDI norms, may be investigated soon


Representative Image

Subhayan Chakraborty New Delhi
The government may drop the proposal of the draft e-commerce policy to allow foreign direct investment (FDI) in Indian online firms selling through the inventory-based model. 

The draft e-commerce policy, which drew flak from several quarters, suggested that the sale of domestically produced goods through online platforms should be promoted by allowing limited inventory-based B2C (business to consumer) model. The draft favoured up to 49 per cent foreign equity in inventory model in the case of 100 per cent made in India products sold through Indian management-controlled platforms with resident Indian founders/promoters.

The government has no intention of allowing FDI

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Aug 29 2018 | 5:30 AM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to