<h1>Government Clarifies 100% FDI Policy in E-commerce: B2B Allowed, B2C Inventory-Based Model Prohibited, Ensuring Compliance.</h1> The government reiterated its FDI policy on e-commerce through Press Note 2/2018, emphasizing that 100% FDI is allowed only in B2B e-commerce, while B2C e-commerce through an inventory-based model remains prohibited. Previous guidelines in Press Note 3/2016 prohibited e-commerce platforms from influencing product prices to avoid circumventing FDI restrictions on multi-brand retail. Despite this, complaints persisted about violations. The latest clarification aims to ensure compliance and protect consumer interests. The policy does not restrict product types sold on marketplaces and does not alter FDI rules in other sectors, such as food product retail trading, which allows 100% FDI.