Domestic traders’ body CAIT on Wednesday said the foreign direct investment policy in the e-commerce sector should be enforced in letter and spirit so that global players do not violate the rules.
The issue was raised by Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal at a meeting called by the Department for Promotion of Industry and Internal Trade (DPIIT) to discuss about FDI in e-commerce.
The present policy, that allows 100 per cent FDI in marketplace e-commerce platforms and prohibits FDI in inventory-based model of e-commerce, is absolutely correct and in line with government’s intent to protect the small merchants, he said.
“The policy should be enforced in letter and spirit,” he added.
According to him, due to creative interpretations about the relationship between marketplace and sellers, global companies are controlling either the sellers on their platform or their inventory.
Source: Business Standard
