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of <h1>India's FDI Rules: 100% Allowed in B2B E-commerce, Restrictions on B2C; Marketplace Model Open, Inventory Model Closed.</h1> The guidelines for Foreign Direct Investment (FDI) in e-commerce allow up to 100% FDI under the automatic route in the Business to Business (B2B) e-commerce sector. FDI in Business to Consumer (B2C) e-commerce is generally not permitted, except in specific cases such as manufacturers selling products made in India or single-brand retail entities with physical stores. The marketplace model of e-commerce, where an entity provides a digital platform for buyers and sellers, is open to 100% FDI, while the inventory-based model, where the entity owns and sells goods directly, is not. Additional conditions include ensuring seller responsibility for product delivery and warranties, and maintaining a level playing field by not influencing sale prices.
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