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Sitharaman to discuss the ecommerce policy framework with state industry ministers

15 Jul 2015 Evaluate

Under mounting pressure at international forums to open up the retail e-commerce sector to foreign investment, commerce and industry minister Nirmala Sitharaman will discuss the ecommerce policy framework with state industry ministers in a meeting that will explore the possibility of allowing foreign direct investments in consumer ecommerce. The ministers' meeting will be preceded by an official level meeting where officials of the department of commerce and department of industrial policy and promotion (DIPP) will meet industry officials of the states to discuss ease of doing business and ecommerce policy.

It has been reported that a whole range of issues on ecommerce will be discussed with the states including taxation, FDI policy framework and definition of ecommerce. The meeting is also considered important, as for the first time, the commerce department will present international trade data for states, urging them to put in place a trade policy that encourages exports and jobs creation. Sitharaman in May had met both domestic and foreign e-commerce firms and industry lobby groups to try and gain a better understanding of the issues faced by such companies.

The current policy allows 100 per cent FDI in business-to-business (B2B) ecommerce but business-to-consumer (B2C) is closed to foreign investment and the government has been under intense pressure from various countries to liberalise foreign direct investment in the ecommerce sector. Not only has Japan been pressing for setting up a working group on e-commerce in the regional comprehensive economic partnership (RCEP), but now Russia too has started pushing for an agreement on ecommerce

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