E-Commerce

Manufacturing Units Can Sell Products Through E-Commerce

E-CommerceManufacturing units set up through foreign direct investment (FDI) can sell their products through retail including e-commerce platforms without any additional approval.

This clarification was given by commerce and industry minister Nirmala Sitharaman in a written reply in Rajya Sabha, the upper house of Parliament.

Mentioning the steps taken for effective expansion and foreign investment promotion of e-commerce in India, Sitharaman said the present FDI policy provides up to 100 per cent FDI under the automatic route in B2B e-commerce activities.

In his union budget speech on July ten 2014, finance minister Arun Jaitley had said, “The manufacturing units will be allowed to sell its products through retail including e-commerce platforms without any additional approval.”

As per regulation framed under the Foreign Exchange Management Act (FEMA) 1999, 100 per cent FDI is permitted under automatic route only in B2B e-commerce activities and not in retail trading.

FDI is also not permitted in retail trading, in any form, by means of e-commerce, for companies engaged in the activity of single/multi brand retail trading, the minister said.

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