As per extant FDI policy, FDI up to 100% under the automatic route is permitted in B2B e-commerce activities. The present policy does not permit retail trading, in any form, by means of e-commerce, for companies with FDI engaged in the activity of single/multi brand retail trading.

The following announcement in respect of FDI with reference to manufacturing sector was made by FM during his Budget Speech on 10.07.2014:-

“FDI in the manufacturing sector is today on the automatic route. The manufacturing units will be allowed to sell its products through retail including E-commerce platforms without any additional approval”.

Government takes into consideration the concerns of all stakeholders including domestic industry and consumers while formulating FDI policy. Safeguards are put into the FDI policy wherever necessary.

The total FDI inflow in the sector from April 2000 to April 2014 is US $ 37.10 million.

Total FDI equity inflows during April 2000 to April 2014 in E-Commerce into India is at US$ 37.10 million, being 0.02% of the total FDI equity inflows of US $ 219,286 million. No targets are fixed for FDI inflows, nor is an assessment of future inflows possible, as FDI is largely a matter of private business decisions.

The information was given by the Minister of State (Independent Charge) in the Ministry of Commerce & Industry Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.

Foreign Direct Investment in e-commerce: full automatic route for B2B while retail e-commerce by FDI retailers remains restricted. The policy permits Foreign Direct Investment under the automatic route for B2B e commerce, while retail trading through e commerce by companies with FDI in retail trading remains prohibited; separately, manufacturing units are allowed to sell products through retail, including e commerce platforms, without additional approval.