Govt may not allow FDI in online firms selling via inventory-based model

Several complaints against e-tailers violating the FDI norms, may be investigated soon

The government may drop the proposal of the draft e-commerce policy to allow foreign direct investment (FDI) in Indian online firms selling through the inventory-based model. 

The draft e-commerce policy, which drew flak from several quarters, suggested that the sale of domestically produced goods through online platforms should be promoted by allowing limited inventory-based B2C (business to consumer) model. The draft favoured up to 49 per cent foreign equity in inventory model in the case of 100 per cent made in India products sold through Indian management-controlled platforms with resident Indian founders/promoters.

The government has no intention of allowing FDI