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Retail FDI Policy PDF
Retail FDI Policy PDF
The Window of
Opportunity
Couple of Retail Basics
• Retail?
• Modern Trade – Traditional Retail? E-commerce?
• Market share?
MT is less than 10% of total retail sales in India: Industry estimates
Online is 1.6% of retail sales in India: World Bank, Dec 2019
Policy Timeline
• Pre-1991 (Pre-liberalization) – Kirana stores, PDS (Fair Price Shops), Cooperative
stores (Government’s chains in 60’s – 70’s)
• Early 1990s (Liberalization era) –
FIPB set up for processing FDI proposals, make recommendations to Government
(abolished in 2017)
DIPP in 1995 for increasing FDI flows in the country (renamed Department for
Promotion of Industry and Internal Trade – DPIIT in 2019) for promotion of retail trade,
welfare of traders and their employees, facilitating ease of doing business and start-
ups, on a request by Confederation of All India Traders - CAIT
• 1997 – FDI upto 100% allowed under the automatic route in Cash and Carry Wholesale
Trading
FDI Policy Timeline
• 2006 (A Policy Milestone)
SBRT – 51% FDI through FIPB route, MBRT – No FDI… APMC Act
• 2016 (Guidelines for FDI in e-commerce) –100% FDI under automatic route in
marketplace model of e-commerce, FDI not permitted in inventory-based
model of e-commerce:
E-commerce entity providing marketplace will not exercise ownership of the inventory
Will not permit more than 25% of sales through its marketplace from one vendor or their group
companies
Will not directly/indirectly influence the sale price of goods and services, shall maintain level
playing field
May provide support services to sellers like warehousing, logistics, order fulfillment, call centre,
payment collection and other services
Post-sales delivery of goods to customers, customer satisfaction will be the responsibility of the
seller
FDI Policy Timeline