The Indian government has set up a committee to examine issues related to foreign direct investment (FDI) in e-commerce, said commerce and industry minister Piyush Goyal on Wednesday.
A draft national e-commerce policy has already been prepared and placed for comments in the public domain.
In a written reply to the Parliament, Goyal said, “A committee has been constituted on July 12 under Additional Secretary, Department for Promotion of Industry and Internal Trade (DPIIT) with members from the Department of Commerce, Department of Consumer Affairs, Department of Legal Affairs and Ministry of MSME to examine issues related to FDI in e-commerce and give its suggestions.”
In a separate reply, the minister said no FDI application in single brand retail trade has been granted waiver from local sourcing norms yet on the basis of ‘state-of-art’ or ‘cutting-edge’ technology.
India allows foreign direct investment up to 100% under the automatic route. Under the automatic route, the foreign investor or the Indian company does not require any prior approval from the Reserve Bank or Government of India. The approval route FDI is allowable in all sectors and activities specified under the Consolidated FDI Policy.
The government had proposed in the recent budget that local sourcing norms will be eased for foreign investment in single brand retail where a 100% FDI is permitted with a 30% mandatory local sourcing clause.