A draft National e-Commerce policy has been prepared and placed in public domain. This policy addresses six broad areas of the e-commerce ecosystem viz. data, infrastructure development, e-commerce marketplaces, regulatory issues, stimulating domestic digital economy and export promotion through e-commerce. The Policy takes into account interests of all stakeholders, like investors, manufacturers, MSMEs, traders, retailers, startups and consumers.

The FDI Policy on e-commerce, first pronounced through Press Note 2 of 2000, permitted 100% FDI in B2B e-commerce activities. With a view to clarify already existing policy framework, after extensive stakeholder consultations, Press Note 3 was issued by DPIIT in 2016. B2C e-commerce, that is multi-brand retail through inventory based model, has all along remained prohibited for FDI. Through the Press Note 2 (2018) issued on 26 December, 2018 Government has only reiterated the policy provisions to ensure better implementation of the Policy in letter and spirit, without making any change in the underlying principle.

In response to the draft Policy, comments of a number of foreign governments have been received, including the US Government flagging issues of US businesses.

This information was given by the Minister of Commerce and Industry, Piyush Goyal, in a written reply in the Lok Sabha today.

E commerce foreign investment policy reiterated; B2B FDI allowed while B2C inventory based retail remains prohibited after consultations The draft National e Commerce Policy addresses data governance, infrastructure, marketplaces, regulatory measures, domestic digital economy stimulation and export promotion, balancing stakeholder interests. It reiterates the existing Foreign Direct Investment stance: full FDI for B2B e commerce as previously permitted, and prohibition of FDI in inventory based multi brand B2C e commerce; a later Press Note clarified implementation without changing principles, and foreign governments submitted comments on the draft.