In this episode, lets discuss about the policy on FDI in E-Commerce, which is effective from 1st February, 2019.

Guidelines for Foreign Direct Investment on e-commerce sector are

🤚i) 100% FDI under automatic route is permitted in marketplace model of e- commerce.

🤚ii) FDI is not permitted in inventory based model of e-commerce.

Inventory based model of e-commerce means an e-commerce activity where inventory of goods and services is owned by e-commerce entity and is sold to the consumers directly.

Refer Press Note 2: https://dipp.gov.in/whats-new/press-note-2-2018

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