The department of industrial policy and promotion recently released Press Note 2 of 2018, wherein it has reviewed and clarified the foreign direct investment policy for e-commerce. The changes are set to come into effect from 1 February. The question that plagues the industry is what will be the impact on the sector.

Publication: Live Mint (Online)

Date: January 16, 2019

India’s restriction on foreign investment in retail was originally inspired by government’s concern for the well-being of shopkeepers and small retailers. When the green shoots of e-commerce first became visible, this anxiety transferred to the digital world. The government issued a press note (Press Note 2 of 2000) that made it clear that restrictions in the offline world would apply with just as much vigour to the online world—establishing an equivalence that was unwarranted at the time between the nascent e-commerce industry and traditional Indian retail.

Publication: Live Mint (Online)

Date: January 16, 2019