Government Seeks Industry Feedback On E-Commerce And Retail FDI Rules

2025-10-14 02:49:47

(MENAFN- KNN India) New Delhi, Oct 14 (KNN) Senior officials from the Department for Promotion of Industry and Internal Trade (DPIIT) met executives from leading e-commerce and retail companies last week to gather feedback on India's foreign direct investment (FDI) policies for the sector, according to sources familiar with the matter.

The discussions come as India and the United States negotiate a broader trade deal that may include talks on allowing inventory-led models for foreign-funded e-commerce platforms.

The meeting, held on Thursday, saw participation from Amazon, Walmart-owned Flipkart, Reliance, and representatives of industry bodies such as the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce & Industry (FICCI).

Officials reportedly sought inputs on easing FDI regulations across single-brand retail, multi-brand retail, e-commerce, and food product trading.

“The government is looking to simplify sectoral conditions and reduce compliance obligations for foreign investors,” said a person aware of the discussions. DPIIT also requested written submissions from the industry regarding FDI norms for e-commerce.

Currently, India's FDI policy bars e-commerce companies with foreign ownership from holding inventory, a restriction that global firms have long wanted relaxed. Indian-owned companies such as Reliance Retail and Tata Group, however, are not bound by these limitations.

To navigate the restrictions, some quick commerce players have restructured ownership. Blinkit, for instance, shifted to an inventory-led model after its parent company became majority Indian-owned. Other platforms like Zepto and Swiggy are reportedly exploring similar moves.

These talks gain significance as Walmart-backed Flipkart prepares to shift its domicile to India ahead of its planned IPO, while PhonePe has already filed for a public listing.

The US has been urging India to grant foreign online retailers greater access to its USD 125-billion e-commerce market.

(KNN Bureau)

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