1. DIPP asks state govts for inputs on e-comm situation

DIPP asks state govts for inputs on e-comm situation

“Govt is not allowing FDI in e-commerce, but these guys are pouring discounts and discounts are coming from FDI money”

By: | Kolkata | Published: September 22, 2015 12:44 AM

The Department of Industrial Policy and Promotion (DIPP) has asked the state governments to give their inputs on the country’s e-commerce situation, including their views on deep discounts being offered by some major e-tailers, likely for formulating a ‘consolidated’ policy on retail, according to Retailers Association of India.

“DIPP has asked various states to come up with their views about overall e-commerce situation in India. And they are supposed to create a consolidated policy,” Retailers Association of India (RAI) chief executive officer Kumar Rajagopalan told reporters when asked about the Centre’s view on the deep discount sales by e-commerce players.

Rajagopalan said with some top e-commerce players following the deep-discounting models in India aided by “foreign funds”, the country’s brick-and-mortar retailers were facing tough competition as there was no level playing field.

“The worry is these guys are deep discounting with funds of FDI money. The government is not allowing FDI in e-commerce, but these guys are pouring discounts and discounts are coming from FDI money,” he said on the sidelines of an event of MCC Chamber of Commerce and Industry on Monday.

Sales of brick-and-mortar retailers are being impacted as leading e-commerce players such as Amazon, Flipkart and Snapdeal are offering unprecedented discounts in  their sales.

RAI, which represents India’s top retailers, has already moved the Delhi High Court, demanding that the Centre should ensure level playing field for all the retail players in FDI norms.

Tags: E Commerce
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