Foi in E-Commerce Market Place Model- Issues and Challenges

Abstract

E-Commerce has been defined as the buying and selling of goods and entices including digital products over digital and electronic network. E-Commerce still in the nascent stage in India has been in rough terrains owing to regulatory and legal ambiguities. Recently, the valuations of several e-commerce companies were revised downwards. In the wake of this, and in its bid to promote campaigns like "Start-Up India" and "Digital India", the Government of India has recently issued revised guidelines pertaining to FD/ in E-Commerce. The press-note (dated March 29, 2016) issued by the Department of Industrial Policy and Promotion clarifies various points by defining e-commerce, e-commerce entity, inventory-based model as opposed to marketplace model of e-commerce. By virtue of these guidelines, J00o/c FD/ shall be permissible to marketplace models provided they fulfil the other conditions. These conditions have stirred homer's nest, and the topic has grown to become a big debate among the practitioners and industry experts. Moreover, according to Reserve Bank of India (RBI), total foreign direct investment (FD/) in India increased to $42 billion during April-February in 2015-/6, up by 27.45 per cent from the inflows in the corresponding period of the previous fiscal. So, the researchers have taken this current topic and tried to identify pros and cons of this revised policy by compiling various reports and articles on the subject. The study shall provide the reader with a snapshot of the repercussions of the FD/ policy and experts' views on the same