DIPP releases guidelines for FDI in e-commerce

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The Department of Industrial Policy and Promotion (DIPP) has released press note 3 (2016 series) in order to provide clarity on the existing policy. The press note sets out guidelines for foreign direct investment (FDI) in the e-commerce sector. As per the consolidated FDI policy circular of 2015, up to 100% FDI is permitted under the automatic route for business-to-business (B2B) e-commerce. However, no FDI is permitted in business-to-consumer e-commerce (except for certain specified circumstances). The press note lays down the following guidelines and conditions:

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The business law digest is compiled by Nishith Desai Associates (NDA). NDA is a research-based international law firm with offices in Mumbai, New Delhi, Bangalore, Singapore, Silicon Valley and Munich. It specializes in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner.

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