Tag Archives: Department of Industrial Policy & Promotion

ILN Today Post

Changing landscape of the Indian Foreign Direct Investment Policy

The foreign direct investment (“FDI”) policy of India has in the recent past witnessed a series of reforms introduced by the Government with the aim of increasing FDI inflows into India inter alia by liberalizing FDI in various sectors and streamlining the approvals processes. According to the Ministry of Commerce and Industry, FDI inflows hit an all-time high of USD 60.1 billion in 2016-17 as compared to FDI inflows of USD 55.6 billion for the year ending March 2016, (as against record high of USD 139 billion FDI inflows in China in 2016).

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ILN Today Post

FDI Liberalizations in the E-Commerce Sector

Under the Consolidated Foreign Direct Investment Policy (“FDI Policy”) issued by the Department of Industrial Policy & Promotion (“DIPP”), FDI is permitted upto 100% under the automatic route in companies engaged in E-Commerce provided such companies would engage only in Business to Business (B2B) e-commerce. FDI in E-Commerce with respect to retail trading, however, was not allowed.

With the issuance by DIPP of Press Note 12 of 2015 dated November 24, 2015, certain critical amendments have been brought in the FDI policy with respect to the single brand retail sector and manufacturing sector vis-à-vis the E-Commerce space. 

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