Opinion | Time to redo FDI in e-commerce in India4 min read 15 Jan 2019, 11:28 PM IST
With each new iteration of the regulations, the e-commerce industry will find more convoluted ways to adapt
India’s restriction on foreign investment in retail was originally inspired by government’s concern for the well-being of shopkeepers and small retailers. When the green shoots of e-commerce first became visible, this anxiety transferred to the digital world. The government issued a press note (Press Note 2 of 2000) that made it clear that restrictions in the offline world would apply with just as much vigour to the online world—establishing an equivalence that was unwarranted at the time between the nascent e-commerce industry and traditional Indian retail.
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