India needs to open up the e-commerce retail trade for foreign players completely as the country cannot remain behind in the sector, a top government official said today.
"Absolutely. Each e-commerce players actually want the sector to be opened up. They are young players and all of them want to grow and expand and they are facing huge problem of liquidity. I think, we just need to open up this e-commerce fully.
"The whole world has moved (on e-commerce). Why should India remain behind in this sector," Secretary in the Department of Industrial Policy and Promotion (DIPP) Amitabh Kant told private news channel CNBC-TV18.
He said the DIPP has concluded stakeholders' consultation on the issue and now is the time to decision making.
"We will put this before the new government. They will take the call," he added.
Google, Amazon and Flipkart, among other stakeholders, favoured permitting FDI in e-commerce retailing.
India's FDI policy restricts e-commerce companies from offering services directly to retail consumers. At present, 100 per cent FDI is allowed in business-to-business (B2B) e-commerce but not in retail trading.
"I will strongly propose to open this," he said.
On the BJP's stand that it would roll back the policy on FDI in multi-brand retail trading, Kant said it is a political decision but the policy should be given a fair trial.
"It is the political call the new government has to take but in my view it is a very young policy and we should give longer period of trial," he said.
In fact, he said, there is need to further relax the FDI in multi-brand retail.
"To my mind instead of rescinding the policy, the whole range of rules and conditionalities which have constrained the policy needs to open up more and liberalise more," he added.
In its manifesto, BJP had said no to FDI in retail.
The government allowed 51 per cent FDI in multi-brand retailing in September 2012 with certain conditions like 30 per cent mandatory sourcing requirement from small industries.
Global mega-stores had asked the Indian government to relax these conditions.
