100% FDI in E-Commerce

Foreign Direct Investment (FDI) in e-commerce (market place model) is allowed in order to attract more foreign investments.

E-commerce means buying and selling of goods and services, including digital products over digital and electronic network.

What is  market place model and inventory model?

Market place model of e-commerce means providing an IT platform by an e-commerce entity on a digital and electronic network to act as a facilitator between buyer and seller.

The 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 consumers directly, according to the guidelines.

A market place entity will be permitted to enter into transactions with sellers registered on its platform on business-to-business basis.

The government has already allowed 100 per cent FDI in business-to-business (B2B) e-commerce.

Department of Industrial Policy & Promotion

Established in the year 1995, and in the year 2000 Department of Industrial Development was merged with it.

Working under the Ministry of Commerce and Industry, Government of India.

The incumbent Minister of Commerce and Industry (Independent Charge) is  NirmalaSitharaman.

DIPP is responsible for the overall industrial policy ,  increasing the FDI flows to the country, for intellectual property rights relating to patent, designs, trademark, and Geographical indication of goods and oversees the initiative relating to their promotion and protection.