Published On: Sat, May 31st, 2014

Industry vouches for FDI in Retail E-commerce to Reach Targeted $70 Billion Growth

e commerce

A roundtable discussion concerning the subject matter of sanctioning FDI in the retail e-commerce, particularly in the B2C segment, was held on the 28th May at Hotel Le Meridien, New Delhi. The forum witnessed the existence of representatives from numerous e-commerce companies dwelling in the league as Snapdeal.com, followed by the likes of Yebhi.com, Infibeam.com, besides the presence of Kiran Karnik, Chairman, CII National Committee on Broadband & Telecom, R. Chandrashekhar, President, NASSCOM, Arvind Gupta, Head-IT Cell, BJP as well as Bhaskar Pramanik, Chairman, Microsoft India.

The meeting underlined certain key issues as regards the Indian e-commerce industry, primarily the current policy that from its part prohibits FDI in inventory-based B2C e-commerce space, in so doing creating a relapsing environment for the industry to be able to mature. The Indian e-commerce industry is scheduled to grow to a $70 billion industry by the year 2020 and in order to realize the target; it is indispensable to do away with the glitches being encountered by the sector at present.

R. Chandrashekhar, President, NASSCOM, mentioned that “The focus of the current Government is on manufacturing and overall economic development. We feel that the Government also needs to focus on a policy framework for allowing FDI in B2C e-commerce as presently the market players do face certain restrictions when it comes to raising funds. 100% FDI is allowed in the B2B segment; however Indian financiers are reluctant to invest when it comes to the B2C segment. Hence, investment through the FDI route is the need of the hour”.

“There are certain unwarranted fears amongst the retail industry that e-commerce will destroy jobs in India. However, it is just the opposite as e-commerce opens up new markets and creates new opportunities for SMEs and individuals across regions where none existed before. Also, since retail e-commerce involves a substantial logistic support part, it results in the creation of new jobs for the skilled” supplemented Kiran Karnik, Chairman, CII National Committee on Broadband & Telecom.

A recommendation document having inputs as well as feedback of the industry players will be submitted to the policy-making bodies of the administration for them to assess the current policy FDI in on e-commerce and also addresses issues related to Internet penetration, followed by payment systems, logistics, improving supply chain efficacy in addition to alternate mode of payments.

Arvind Gupta, Head, IT Cell, Bharatiya Janata Party further commented “Our government’s key focus is on the overall economic development and we are willing to extend our support to the industry in all possible ways. We are planning to roll out GST soon as it will cut down on multiple taxation on the manufacturing industry and benefit industry players. Revisiting the policy on FDI in retail e-commerce is also a part of our agenda and we are willing to consider the recommendations provided by the industry representatives on the same”.

The CyberMedia Group organized the discussion which was moderated by Pradeep Gupta, CMD, CyberMedia.

About the Author

Jawed Akhtar

- A Journalist by interest and a Music Enthusiast by passion. Wedded to Mother Nature, Jawed indulges his aesthetics in travelling and reading books of varied genres. Having covered News stories for top Dailies in his formative years, that is, he is game for tryst with Technology at Techmagnifier.

Industry vouches for FDI in Retail E-commerce to Reach Targeted $70 Billion Growth