The government is working towards bringing retail, FMCG and e-commerce within a single policy framework, which will address all the concerns of industry and consumers, NITI Aayog CEO Amitabh Kant
has said. Kant heads a high level committee that will review e-commerce rules including the FDI norms for the sector.
Speaking at FICCI's annual retail, FMCG and ecommerce convention Kant said, "To provide a level playing field to stakeholders, there is a move in the government to harmonise these varied policies." Kant said that while domestic entrepreneurs are being encouraged in the country, foreign players will boost healthy competition in the sector.
The domestic market would be challenged by the foreign businesses, which would enable indigenous companies to scale up, enhance quality of products and services and penetrate global markets," he said.
As per current policy government allows 100 per cent FDI under approval route and any foreign investment beyond 51 per cent, it is required that 30 per cent of the value of goods be sourced from India.
Single brand licence holders can also sell through ecommerce platform under automatic route.
The rules for ecommerce which were notified in March this year classify such companies as B2B
operating under marketplace model where 100 per cent FDI is allowed.
India does not allow FDI in B2C retail. The 12 member committee being chaired by Kant is also looking at liberalising the ecommerce policy with hope to further boost the sector. The committee has to give its recommendation to the Prime Minister's office in the next two months.
The NITI Aayog CEO also said that India has become the top FDI destination in the world and this has given the country access to latest technology, global best practices and innovations. Kant said technology will play a crucial role in the growth of retail sector.
With a growing penetration of the internet which reaches rural areas of the country, the retailers would be able to deepen their market.