Question : e-Commerce Policy

(a) whether the Ministry has recently introduced some changes to the e-Commerce Policy prevailing in the country with a view to protecting the indigenous traders and business houses from being taken undue advantage of by the e-Commerce giants and if so, the details thereof;

(b) whether the policy changes are poised to take effect from the 1st of February, 2019 and if so, the details thereof;

(c) whether the major policy changes include that the e-Commerce companies in India will not be able to sell products via companies in which they have an equity interest and they will not be able to compel the sellers to sell their products exclusively on the e-Commerce platform of one company, if so, the details thereof;

(d) whether the policy changes have not gone down well with the US traders and if so, the details thereof; and

(e) whether the media reports are true that these changes would scale down the quantum of e-Commerce turnover by about $ 46 billion in about two years and if so, the details thereof?

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI C.R. CHAUDHARY)

(a) to (c): In order to ensure due compliance of the FDI policy on e-Commerce, Government has issued Press Note 2 (2018) which inter-alia provides that:

(i) An entity having equity participation by e-commerce marketplace entity or its group companies, or having control on its inventory by e-commerce marketplace entity or its group companies, will not be permitted to sell its products on the platform run by such marketplace entity.

(ii) e-commerce marketplace entity will not mandate any seller to sell any product exclusively on its platform only.

This Press Note is effective from February 01, 2019.

(d): Representations in this regard have been received from US India Business Council and US India Strategic Partnership Forum.

(e): The e-Commerce sector is expected to keep growing in future because of a number of reasons. The FDI Policy on e-Commerce has remained unchanged. Better enforcement of this policy will contribute significantly to growth of this sector over medium and long term.

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