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The net Foreign Direct Investment (<keyword id="44528" type="General" weightage="20" keywordseo="fdi" source="Orion">FDI</keyword>) flowing into India reached a 21-month high in October reflecting the strengthening fundamentals of the economy, according to data compiled by the RBI. According to RBI data, the net FDI in India for October stood at $5.9 billion up from $1.55 billion in September. This is the third month in a row to show an increase in net FDI. Around four-fifths of the gross FDI flows into <keyword id="6391506" type="General" weightage="20" keywordseo="equity" source="Orion">equity</keyword> were invested in sectors such as <keyword id="6362048" type="General" weightage="20" keywordseo="manufacturing" source="Orion">manufacturing</keyword>, <keyword id="6354851" type="General" weightage="20" keywordseo="retail" source="Orion">retail</keyword>, <keyword id="6357014" type="General" weightage="20" keywordseo="energy" source="Orion">energy</keyword> and financial services sector. Mauritius, Singapore, Cyprus, and Japan were the leading countries from where FDI flowed into the country, accounting for as much as four-fifths of the total during the month. However, data for the April-October period of the current financial year showed a decline in net FDI inflows to $10.4 billion from $20.8 billion in the same period last year. According to UN ESCAP data released this month, India remains the highest recipient of FDI in 2023 for the second consecutive year amid a slowdown worldwide. Net inflows under external commercial borrowings (ECBs) and non-resident deposit accounts are much higher than last year and outward FDI commitments have also declined leading to higher foreign exchange reserves. India's foreign exchange reserves increased for the fifth week in a row to scale a 20-month high of $615.97 billion as of December 15, according to the latest data released by the RBI. An increase in the foreign exchange reserves helps the RBI to stabilise the rupee when it turns volatile. The RBI intervenes in the spot and forward currency markets by releasing more dollars to prevent the rupee from going into a free fall when it comes under pressure. Any sharp decline in the country's forex kitty leaves the RBI less headroom to intervene in the market to stabilise the rupee.

FDI flows jump to 21-month high in October

Foreign direct investment (<keyword id="44528" type="General" weightage="100" keywordseo="fdi" source="Orion">FDI</keyword>) into <keyword id="3658" type="General" weightage="20" keywordseo="india" source="Orion">India</keyword> declined by 15 per cent to USD 36.75 billion during the April-December this fiscal, according to the latest Department for Promotion of Industry and Internal Trade data. The FDI inflows stood at USD 43.17 billion during the corresponding period of the previous year. The total FDI inflows, which includes equity inflows, re-invested earnings and other capital, declined to USD 55.27 billion during the nine months of the current fiscal year as against USD 60.4 billion in the year-ago period. During April-December 2022-23, <keyword id="6356662" type="General" weightage="20" keywordseo="singapore" source="Orion">Singapore</keyword> emerged as the top investor with USD 13 billion FDI. It was followed by Mauritius (USD 4.7 billion), the US (about USD 5 billion), the <keyword id="6358356" type="General" weightage="50" keywordseo="uae" source="Orion">UAE</keyword> (USD 3.1 billion), the Netherlands (USD 2.15 billion), <keyword id="6355311" type="General" weightage="20" keywordseo="japan" source="Orion">Japan</keyword> (USD 1.4 billion), and Cyprus (USD 1.15 billion), the data showed. The computer software and hardware sector attracted the highest inflows of USD 8 billion during the nine-month period of this fiscal. It was followed by services (USD 6.6 billion), trading (USD 4.14 billion), chemicals (USD 1.5 billion), automobile industry (USD 1.27 billion) and construction (infrastructure) activities (USD 1.22 billion). SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/news/hot-temperature-to-heat-up-prices-reduce-wheat-yield-crisil/articleshow/98153310.cms">Hot temperature to heat up prices, reduce wheat yield: CRISIL</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/sell-off-by-fiis-does-not-impact-markets-retail-participation-is-more-important-says-sebi-executive-director/articleshow/98153452.cms">Sell off by FIIs does not impact markets; retail participation is more important, says SEBI executive director</a>

FDI equity inflows decline 15% to USD 36.75 billon in Apr-Dec FY23

It has been just over a year since India's mobile payments and Quick Response (QR) pioneer <keyword id="6357120" type="General" weightage="100" keywordseo="paytm" source="Orion">Paytm</keyword> made its debut on the stock market and the company has made quite an impression. The initial public offering (IPO), which was the largest in the country's history, drew attention from investors far and wide. Paytm's impressive growth has sparked the interest of savvy investors, both retail and institutional, who are clamouring to add more Paytm stock to their portfolios. As the fintech firm continues to make significant strides towards achieving operating profitability, investors' belief in the Paytm story and the company's long-term potential for success has grown stronger than ever. The company's latest shareholding pattern for the quarter that ended December shows that mutual funds increased their stake by 0.47 per cent to 1.73 per cent. Two new mutual funds entered the stock, taking the total mutual fund shareholders in Paytm from 19 to 21 in the December quarter. Meanwhile, more retail investors have also jumped on board, with their shareholding increasing by 3 per cent to 9.7 per cent. Over 70,000 new investors were added during the quarter, bringing the total number of retail shareholders to around 12 lakh. These developments are a clear indication that more Indians believe in Paytm's ability to deliver profitability without compromising on growth. The increase in domestic investors' shareholding is a vote of confidence in the company's future prospects. Global investment firm <keyword id="6361649" type="General" weightage="50" keywordseo="goldman-sachs" source="Orion">Goldman Sachs</keyword> expects Paytm to be adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) positive by the March quarter, two quarters ahead of the estimates and the company's guidance of September 2023. Goldman Sachs has reiterated its 'Buy' rating for Paytm and has upwardly revised its share price target to Rs 1,120. The firm has stated that the current share price continues to offer a compelling entry point into India's largest and one of the fastest-growing fintech platforms. The increase in shareholding by domestic investors is also a positive sign for the Indian economy, as it shows that more and more Indians are investing in the country's rapidly growing fintech sector. An increase in retail shareholding can bring a number of benefits for a company. One of the most significant benefits is increased liquidity, which can help to stabilise the stock price and improve overall market sentiment. Retail shareholders also tend to have a long-term investment horizon and may be more likely to hold on to their shares, making the company more attractive to investors. The overall <keyword id="44528" type="General" weightage="50" keywordseo="fdi" source="Orion">FDI</keyword> shareholding in Paytm has declined from 71.49 per cent to 66.12 per cent, mainly because of SoftBank offloading a 4.53 per cent stake. The Japanese conglomerate, through its <keyword id="4031888" type="General" weightage="50" keywordseo="vision-fund" source="Orion">Vision Fund</keyword>, continues to own 12.92 per cent of Paytm. Meanwhile, foreign portfolio investors (FPI) holding in the company has gone up by 0.91 per cent to 6.68 per cent. The number of FPIs holding the Paytm stock has increased from 88 to 128 in the third quarter, representing a net addition of 40 investors. As a pioneer in India's fintech revolution, Paytm has been at the forefront of the country's technology-driven shift towards a cashless economy. The <keyword id="13945656" type="General" weightage="50" keywordseo="paytm-super-app" source="Orion">Paytm Super App</keyword> has become a household name that is synonymous with convenience and ease of use. Paytm is expected to post another strong quarter when it announces Q3 (third quarter) results. Meanwhile, its Q3 operating performance update shows strong growth in monthly transacting users, loan disbursals and devices deployed. According to data available, eight out of 12 analysts tracking the company have a 'buy' rating. Paytm is also included in Goldman Sachs' Asia (ex-Japan) 'Conviction List' of stocks that have a high potential for returns and are rated as 'buy'. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/mobile/news/samsung-galaxy-s23-series-to-launch-soon-launch-date-expected-price-and-features/articleshow/97243146.cms">Samsung Galaxy S23 series to launch soon – launch date, expected price and features</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/international/news/b20-has-important-role-to-play-can-be-value-adding-for-world-says-n-chandrasekaran/articleshow/97244919.cms">B20 has important role to play; can be value adding for world, says N Chandrasekaran</a>

Mutual funds increase their stake in Paytm

<keyword id="3658" type="General" weightage="50" keywordseo="india" source="Orion">India</keyword> is leading with the highest hiring intent in certain sectors despite the ongoing global inflation and layoffs in the IT-tech sector, and close to 77 per cent of employers are keen to increase their resource pool in the services sector in the period of January-March 2023, a report showed on Tuesday. Overall, across services and manufacturing sectors, an average of 68 per cent of employers (65 per cent in FYQ3) have expressed a strong hiring sentiment, according to <keyword id="6381892" type="General" weightage="80" keywordseo="teamlease-services" source="Orion">TeamLease Services</keyword>, a leading people supply chain provider. For candidates who are looking to secure job opportunities in the services segment, some of the key sectors leading the hiring spree are e-commerce (98 per cent), telecommunications (94 per cent), educational services (93 per cent), financial services (88 per cent), retail (85 per cent) and logistics (81 per cent). The first three months of 2023 project a strong outlook, especially for fresh graduates and entry-level employees, with 79 per cent of employers willing to hire from this cohort. Opportunities for mid-level and senior level are also performing balanced. Large enterprises, followed by small and medium, are all indicating robust employment progression, the report said. "The ongoing global turmoil with mass layoffs, hiring freeze, and impending recession have significantly affected the services sector globally, especially the IT industry," said <keyword id="14708102" type="General" weightage="80" keywordseo="mayur-taday" source="Orion">Mayur Taday</keyword>, Chief Business Officer, TeamLease Services. However, the sentiment in India continues to be on an upward trajectory. "The government's push towards increasing monetisation ability, introducing <keyword id="44528" type="General" weightage="50" keywordseo="fdi" source="Orion">FDI</keyword> reforms, liberalising conventional satellite communication and remote sensing businesses to increase private sector participation has contributed to the employment growth," he added. In Metro and tier 1 cities, the hiring intent for the services sector is at an exceptionally high level (99 per cent), the report said. "With the 5G rollout, employers are already upskilling their current workforce for the upcoming 5G services. The upside of this activity has positively impacted educational, financial and knowledge outsourcing services," said <keyword id="15835228" type="General" weightage="80" keywordseo="ajoy-thomas" source="Orion">Ajoy Thomas</keyword>, VP and Business Head (retail, e-commerce, logistics and transportation), TeamLease Services. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/flexi-staffing-industry-adds-78000-jobs-in-jul-sept/articleshow/96345488.cms">Flexi staffing industry adds 78,000 jobs in Jul-Sept</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/dyninno-india-to-hire-850-employees-by-december-2023/articleshow/96361726.cms">Dyninno India to hire 850 employees by December 2023</a>

Over 7 in 10 employers keen to hire in services sector in India

<ul><li>The latest regulations are an amendment to the Consumer Protection (<keyword id="35621" type="PERSON" weightage="20" keywordseo="e-commerce">E-Commerce</keyword>) Rules of 2020.</li><li>All e-commerce entities will have to appoint a compliance officer, grievance officer and a nodal contact person.</li><li><keyword id="47183" type="ORGANIZATION" weightage="20" keywordseo="CCI">CCI</keyword> is also looking to launch an antitrust probe in the business practices of both <keyword id="18635" type="COMPANY" weightage="20" keywordseo="Amazon">Amazon</keyword> and <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>.</li></ul> The government of <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword> has decided to revise the e-commerce regulations, as offline retailers in the country continue to be dissatisfied with predatory practices of the e-commerce giants like Amazon and Flipkart. According to the new draft regulations by the Ministry of Consumer Affairs, Food and Public Distribution, e-commerce entities might be prohibited from hosting flash sales. The department of consumer affairs, in the amended policy, defines flash sales as “sale organised by an e-commerce entity at significantly reduced prices, high discounts or any other such promotions or attractive offers for a predetermined period of time on selective goods and services or otherwise with an intent to draw large number of consumers” Notably, organisations like Confederation of All India Traders (CAIT) have previously accused Amazon and Flipkart of giving deep discounts and eating into their businesses. The latest amendments to the Consumer Protection (E-Commerce) Rules of 2020 also bar e-commerce entities from displaying or promoting any misleading advertisements, whether in the course of business on its platform or otherwise. The ministry released the draft on Monday, June 21. Just like the Consumer Protection Act of 2019, which came into force in<a href="https://www.businessinsider.in/advertising/brands/news/the-new-consumer-protection-act-2019-provision-for-heavy-fines-and-even-jail-terms-for-misleadings-ads/articleshow/77065225.cms"> July last year</a>, the latest amendments aim to smoothen the grievance redressal process on e-marketplaces. Each e-commerce platform will have to establish an adequate grievance redressal mechanism. These platforms, including Amazon and Flipkart, will also have to appoint a Chief Compliance Officer, a Resident Grievance Officer and a nodal contact person in India. <table></colgroup><tbody><tr><td colspan="2" style="border-width: 1.5pt; border-color: rgb(0, 0, 0); vertical-align: bottom; background-color: rgb(207, 226, 243); padding: 2pt; overflow: hidden; overflow-wrap: break-word;">New draft e-commerce policy proposes new appointments </td></tr><tr><td style="border-width: 1.5pt; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 2pt; overflow: hidden; overflow-wrap: break-word;">Appointment </td><td style="border-width: 1.5pt; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 2pt; overflow: hidden; overflow-wrap: break-word;">Role </td></tr><tr><td style="border-width: 1.5pt; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 2pt; overflow: hidden; overflow-wrap: break-word;">Chief Compliance Officer </td><td style="border-width: 1.5pt; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 2pt; overflow: hidden; overflow-wrap: break-word;">Ensuring compliance with the Indian rules and Acts </td></tr><tr><td style="border-width: 1.5pt; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 2pt; overflow: hidden; overflow-wrap: break-word;">Resident Grievance Officer </td><td style="border-width: 1.5pt; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 2pt; overflow: hidden; overflow-wrap: break-word;">Ensuring redressal of grievances </td></tr><tr><td style="border-width: 1.5pt; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 2pt; overflow: hidden; overflow-wrap: break-word;">Nodal Contact Person </td><td style="border-width: 1.5pt; border-color: rgb(0, 0, 0); vertical-align: bottom; padding: 2pt; overflow: hidden; overflow-wrap: break-word;">Ensuring coordination with law enforcement agencies and officers </td></tr></tbody></table>The e-commerce rules are a combination of the Consumer Protection Act of 2019, Indian Exchange Control Laws (IEC Regulations) and the Information Technology Act of 2000. These guidelines have been set in place to ensure fair play in technology and a data-driven e-commerce environment. The latest amendment to the Consumer Protection (E-Commerce) Rules of 2020 also states: <ol><li>All e-commerce entities should be registered with the department for promotion of industry and internal trade (DPIIT).</li><li>E-commerce entities should provide information within 72 hours of receiving an order from a government agency.</li><li>E-commerce entities are barred from manipulating search results and cross selling of products.</li></ol>Cross-selling means sale of goods or services which are related or complimentary to a purchase made by a consumer. Usually e-commerce companies follow these practices to maximise their revenue. Praveen Khandelwal, CAIT’s secretary general, believes that the latest guidelines will purify the e-commerce landscape of the country, “which has been greatly vitiated by various e-commerce global companies to the extent that not only the domestic trade has been damaged, but even the consumers are also feeling the heat of their unethical business practices.” The lobby group has once again<a href="https://www.businessinsider.in/policy/news/amazon-and-flipkart-are-destroying-indias-retail-sector-says-cait-asks-government-to-revise-fdi-policy-in-e-commerce/articleshow/81567283.cms"> accused</a> the foreign funded e-commerce companies like Amazon and Walmart-owned Flipkart of violating India’s foreign direct investment (<keyword id="44528" type="COMPANY" weightage="20" keywordseo="FDI">FDI</keyword>) policy. Previously, CAIT and All India Online Vendors Association (AIOVA) have accused these e-commerce giants of flouting Foreign Exchange Management Act (FEMA) rules and devoiding the government of goods and services tax (<keyword id="6354679" type="DEFINITION" weightage="20" keywordseo="gst">GST</keyword>) with their deep discounting policy. The accusation made by lobby groups, along with a few media reports, have put e-commerce entities especially Amazon and Flipkart on a tough spot with the Indian government. Not only is the central government scrutinising their actions, but is also looking to amend India’s FDI policy to create a level playing field for local players. The <a href="https://indiacorplaw.in/2019/01/dipps-revised-fdi-policy-e-commerce-changing-rules-game.html">FDI policies</a> for e-commerce prohibit foreign funded e-commerce companies from selling products of the retailers they have a majority stake in, giving preferential treatment to certain sellers and having a control of their inventory. However, the deep discounting practices did raise questions about Amazon’s and Flipkart’s control over its inventory and pricing policies. In addition, India’s competition watchdog Competition Commission of India (CCI) is planning to launch an <a href="https://www.businessinsider.in/business/ecommerce/news/flipkart-and-amazon-have-challenged-cci-decision-to-launch-an-antitrust-investigation/articleshow/83601987.cms">antitrust probe</a> into Amazon’s and Flipkart’s business practices. The antitrust investigation would look into the alleged policy violations and anti-competitive behaviours of both the companies. SEE ALSO: <a target="_blank" class="c-link" href="https://www.businessinsider.in/cryptocurrency/news/portugals-central-bank-clears-two-crypto-exchanges-for-operations/articleshow/83705548.cms">Portugal’s central bank clears two crypto exchanges for operation</a> <a target="_blank" class="c-link" href="https://www.businessinsider.in/india/news/after-assam-up-law-commission-proposes-population-control/articleshow/83706798.cms">India’s most populous state is about to take some stringent measures to control population</a> <a target="_blank" class="c-link" href="https://www.businessinsider.in/business/startups/news/james-murdoch-plans-to-raise-150-million-from-ultra-rich-to-invest-in-indian-startups/articleshow/83709567.cms">James Murdoch plans to raise $150 million from ultra rich to invest in Indian startups</a>

Amazon, Flipkart and other e-commerce platforms may not be able to do flash sales any more, if Indian government has its way

The Confederation of All India Traders (CAIT) in a letter sent to Union Commerce Minister Piyush Goyal has said <keyword id="1007503" type="PERSON" weightage="20" keywordseo="foreign-entities">foreign entities</keyword> like <keyword id="18635" type="COMPANY" weightage="20" keywordseo="Amazon">Amazon</keyword> and <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> are hell bent on ruthlessly destroying the Indian retail sector with their deep pockets and expansive lobby of legal experts who will stop at nothing before trampling the lives of over 40 crore Indians. CAIT in a communication sent to Goyal said that FDI in e-commerce section of Press Note No.2 of FDI Policy 2016/2018, the stipulations of which foreign entities like Amazon and Flipkart are hell bent on ruthlessly destroying the Indian retail sector with their deep pockets and expansive lobby of legal experts who will stop at nothing before trampling the lives of over 40 crore Indians. "It is nothing less than a daylight robbery where expressive prohibitions of Press Note No.2 are grossly and blatantly are being violated by such foreign entities derived with their ulterior motives to implement their hidden agenda to control and dominate not only the e-commerce business but also the retail trade of India in a very clandestine manner", it said. CAIT said that instead of complying the stipulations of said Press Note both in letter and spirit to respect the law of the land, these foreign entities are deliberately each and every rule of the Press Note No.2 treating India as a banana republic. Under such a grim situation and particularly in the wake of current highly vitiated e-commerce business, a duty is cast upon the Government to protect sanctity of the law, rules and regulations pertaining to FDI in e-commerce and therefore necessity of a new and fresh Press Note replacing Press Note No.2 of the FDI policy is need of the hour. The loopholes of the present policy are being exploited by foreign e-commerce giants like Amazon and Flipkart so that these loopholes are properly plugged and the policy is implemented as per its original intent. CAIT said that such control allows them do predatory pricing, deep discounting, preferential treatment of sellers with capital dumping through their affiliate sellers at its root. All this is done to gain the market share and make illegitimate financial gains at the expense of livelihood of 8.5 crores small merchants, their dependent families and employees. To circumvent the restriction imposed on the <keyword id="2387771" type="POSITION" weightage="20" keywordseo="marketplace-model">marketplace model</keyword> of e-commerce, a common practice resorted to by these giant foreign e-commerce entities has been to create affiliate companies as sellers, in such a way that they have full control on their business by the way of equity and/or economic participation through their parent/group companies without strictly falling within the definition of 'Group Company' in FDI policy. To plug these loopholes CAIT has demanded to include vital points for issuance of a new Press Note on FDI policy in e-commerce. In order to clearly demarcate the boundary between "market place model" and "inventory based model", any type of direct/indirect, equity or economic relationship, between "e-commerce marketplace entity" and "seller on its platform" should be prohibited. For this purpose, any type of relationship between "marketplace entity" and "Seller", whether direct or indirect, equity or economic or otherwise should be strictly prohibited. Such prohibited relationship between Marketplace and Seller may include, but not limited to, Group companies, Affiliates, Related Parties, Associate Companies, Beneficial owners or any other person(s)who can exercise such control. It also suggested that marketplace based model of e-commerce would mean provision of an information technology digital platform by an e commerce entity to act as a facilitator between buyer and seller only. Inventory based model of e-commerce would mean an e-commerce activity where inventory of goods and services is owned by e-commerce entity and is sold to the consumers directly. E-commerce market place entity and its Group Companies will not, directly or indirectly, own or control the inventory i.e. goods or services purported to be sold on the marketplace. Such an ownership or control over their inventory will render the business into inventory-based model. Marketplace entity &amp; its Group Companies shall not, directly or indirectly sell inventory of goods or services purported to be sold on the marketplace to the Sellers. If any goods or services which are sold by the Group Companies of marketplace and are resold in the e-commerce platform, then such activity shall be treated as inventory based model of e-commerce, CAIT said. The seller having ownership or control on its inventory by the Group Companies of e-commerce marketplace entity, is not permitted to sell its goods or services on the marketplace. Inventory of a seller on the marketplace will be deemed to be controlled by e-commerce marketplace entity if such seller purchases its inventory purported to be sold on the marketplace directly or indirectly from its Group Companies. Further, each marketplace entity and its affiliates, group companies, associates shall provide all details, information, documents, statements and returns as required by the Government or any Regulator, at prescribed intervals or from time to time for verification of compliance with the provisions of these guidelines, CAIT said. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/kishore-biyani-future-group-appeals-to-the-singapore-arbitrator-to-exclude-future-retail-from-the-fight-with-amazon/articleshow/81562016.cms">Ahead of Delhi High Court's decision, Future Group appeals to the Singapore arbitrator to exclude Future Retail from the fight with Amazon</a> <a href="https://www.businessinsider.in/business/startups/news/indian-spacetech-startup-pixxel-space-gets-7-3-million-funding-before-the-launch-of-its-first-satellite/articleshow/81562421.cms">Indian spacetech startup Pixxel gets $7.3 million in funding as it announces a new product even before the launch of its first satellite</a> <a href="https://www.businessinsider.in/business/telecom/news/airtel-adds-3-times-more-subscribers-than-reliance-jio-vodafone-idea-turns-positive-for-the-first-time-in-15-months/articleshow/81562851.cms">Airtel adds 3 times more subscribers than Jio while Vodafone Idea gets net addition first time in 15 months</a>

'Amazon and Flipkart are destroying India's retail sector,' says CAIT, asks government to revise FDI policy in e-commerce

<ul><li>Walmart-owned <keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword> had applied for a license to run <keyword id="8221653" type="UNKNOWN" weightage="20" keywordseo="Flipkart-Farmermart">Flipkart FarmerMart</keyword> – a food retail entity that would sell agricultural produce of Indian farmers online.</li><li>The company had applied for the license when 100% FDI in food retail was allowed. </li><li>However, since then the government’s guidelines for food retail have changed. </li></ul>Walmart-owned Flipkart had applied for a license to run Flipkart FarmerMart – a food retail entity that would sell agricultural produce of Indian farmers online. However, the Department for Promotion of Industry and Internal Trade (<keyword id="7281036" type="UNKNOWN" weightage="20" keywordseo="dpiit">DPIIT</keyword>) has rejected the application saying that the Flipkart FarmerMart would flout the regulatory guidelines. However, Flipkart intends to reapply for the license. “At Flipkart, we believe that technology &amp; innovation driven marketplace can add significant value to our country’s farmers and food processing sector by bringing value chain efficiency &amp; transparency. This will further aid in boosting farmers’ income &amp; transform Indian agriculture. We are evaluating the department’s response and intend to re-apply as we look to continue making a significant impact on small businesses and communities in India.” said a Flipkart spokesperson. According to the government, any e-commerce platform with foreign direct investment can simply be the platform for the third party sellers to reach out to buyers, but it cannot sell inventory of its own. <a href="https://timesofindia.indiatimes.com/business/india-business/govt-rejects-flipkarts-plan-to-enter-food-retail/articleshow/76126956.cms">TOI r</a>eported that the Flipkart FarmerMart’s memorandum of association would not allow it to enter food retail. “In line with the government of India’s FDI (foreign direct investment) policy, which allows 100% FDI in food retail for food produced and manufactured in India, Flipkart is applying for appropriate licences from the government,” Flipkart Group CEO Kalyan Krishnamurthy had said in <a href="https://economictimes.indiatimes.com/industry/services/retail/flipkart-to-start-selling-food-through-farmermart/articleshow/71606817.cms?from=mdr">October 2019</a>. However, since then the government has changed the guidelines, which put Flipkart’s new venture in danger. Flipkart had announced its entry into fresh produce last year when it began piloting the same in Bengaluru and Hyderabad. The development comes just days after Flipkart’s rival Amazon has announced its entry in food delivery in India. Flipkart, founded in 2007, has been a Singapore-registered entity since 2011 and is today owned by US retail giant Walmart. The US retail giant owns a 77% stake in Flipkart, which it acquired in 2018 for a whopping $16 billion SEE ALSO: <a href="https://www.businessinsider.in/business/startups/news/bharatpe-laid-off-several-employees-after-announcing-salary-hikes-in-april/articleshow/76128348.cms">BharatPe laid off several employees after announcing salary hikes in April</a> <a href="http://businessinsider.in/business/corporates/news/infosys-reportedly-plans-to-reduce-the-number-of-managers-the-ceo-and-coo-got-over-25-salary-raise-in-fy20/articleshow/76127600.cms">Infosys reportedly plans to reduce the number of managers— the CEO and COO got over 25% salary raise in FY20</a> <a href="https://www.businessinsider.in/business/corporates/news/hindustan-unilever-limited-ceo-sanjiv-mehta-says-the-product-inventory-range-will-be-smaller-and-simpler-hereon/articleshow/76128468.cms">HUL CEO says the product inventory range will be smaller and simpler hereon⁠— analysts believe others may have the same plan</a>

Flipkart will try again for a ‘Made in India’ tag to be able to sell farm produce

<ul><li>The <keyword id="6387077" type="UNKNOWN" weightage="20" keywordseo="narendra-modi-government">Narendra Modi government</keyword> has eased the norms for 30% local sourcing rule for FDI in single-brand retail trading.</li><li>The government has now allowed online sales even before a company sets up a brick and mortar presence in India.</li><li>This will invite major single brand retailers who want to enter the Indian market.</li></ul>Indians will now be able to enjoy more stores of Swedish furniture giant <keyword id="6371031" type="UNKNOWN" weightage="20" keywordseo="IKEA">IKEA</keyword>, or Spanish brand <keyword id="6377147" type="PERSON" weightage="20" keywordseo="zara">Zara</keyword>, <keyword id="150626" type="COMPANY" weightage="20" keywordseo="HM">H&amp;M</keyword> and many more, all thanks to government’s move to relax laws. They will also be able to buy more foreign brands online, even those which have no stores in the country yet. Yesterday, the government in its Foreign Direct Investment (FDI) policy changes, eased the norms that had earlier held them back – like 30% local sourcing rule for single-brand retailers. "H&amp;M has been sourcing from India since the last 30 years for its international markets, its great to see global sourcing is now part of the 30% local sourcing norms. We see this supporting the ease of doing business in India and driving in larger investments from global companies," said Janne Einola, Country Manager H&amp;M India. The Narendra Modi-led government has been chasing growth at a time when the country’s corporate sector is saddling debt coupled with slow demand. To supplant this gap, the government is trying to attract foreign investors who are keen on the India growth story. “This will lead to greater flexibility and ease of operations for single brand retail trading (SBRT) entities, besides creating a level playing field for companies with higher exports in a base year,” said the government said. As a part of the eased norms, the government decided that all procurements made from India by the single brand retail entity shall be recognised as local sourcing. This is irrespective of whether the goods procured are either sold in India or exported. Green signal to global corporations The relaxation of the FDI norms will send the green signal to global corporations who want their share of the growing Indian retail market. “Many foreign brands have been in a wait-and-watch mode on account of the difficulties so far perceived in meeting the mandated sourcing norms. With more clarity, many such players can now make their foray into India to tap into India’s consumption story - and to boost investments here,” said Shobhit Agarwal, MD and CEO, ANAROCK Capital. Online before brick The government also allows online sales even before a company sets up a brick-and-mortar presence. “Online sales will also lead to creation of jobs in logistics, digital payments, customer care, training and product skilling,” said the government said. This will invite major single brand retailers who want to enter the Indian market, without necessarily having to invest in the required physical infrastructure. “Massive capital is required for setting up a physical store vis-à-vis online platforms. Now retailers can start online sales without having to open physical stores. This will significantly ease capital pressure on small retailers who are looking to start afresh,” said Agarwal.

India gives green signal to global majors like IKEA, Zara, H&M and more

<ul><li><keyword id="160091" type="COMPANY" weightage="20" keywordseo="USIBC">USIBC</keyword> has urged the Indian government not to tighten e-commerce rules and not to make any more material restrictive changes to e-commerce investment rules.</li><li><keyword id="853920" type="COMPANY" weightage="20" keywordseo="CAIT">CAIT</keyword> has sent a strongly-worded letter to USIBC President Nisha Biswal stating that USIBC's intervention is unwarranted and runs against the interests of the 85 million traders of India.</li><li>CAIT National President B.C. Bhartia and Secretary General Praveen Khandelwal said that the intervention of USIBC shows both <keyword id="18635" type="COMPANY" weightage="20" keywordseo="Amazon">Amazon</keyword> and <keyword id="80487" type="COMPANY" weightage="20" keywordseo="walmart">Walmart</keyword> are trying every route for an embargo over proposed changes in Press Note.</li></ul>New Delhi, The <keyword id="76562" type="ORGANIZATION" weightage="20" keywordseo="Confederation-of-All-India-Traders">Confederation of All India Traders</keyword> (CAIT) has strongly criticised US-based lobby group <keyword id="181958" type="ORGANIZATION" weightage="20" keywordseo="US-India-Business-Council">US-India Business Council</keyword> (USIBC) for objecting to an initiative of DPIIT to reframe the Press Note 2 of <keyword id="44528" type="COMPANY" weightage="20" keywordseo="FDI">FDI</keyword> policy. "The uncalled-for intervention of USIBC shows utter desperation of US companies like Amazon and Walmart and which are part of this lobby group, as they have understood that their sinister game of controlling and dominating e-commerce and retail trade of India will soon be over and they are trying to block initiative of DPIIT for bringing a new Press Note and e-commerce policy," CAIT said. "However, the 85 million-strong business community of India will ensure that reforms in e-commerce landscape should take place as soon as possible," the trader's body said. The CAIT has sent a strongly-worded letter to USIBC President Nisha Biswal stating that without knowing the true facts and under pressure of Amazon, Walmart and others, USIBC's intervention is unwarranted which runs against the interests of the 85 million traders of India. USIBC has urged the Indian government not to tighten e-commerce rules and not to make any more material restrictive changes to e-commerce investment rules as it will limit e-commerce firms from leveraging their scale. CAIT National President B.C. Bhartia and Secretary General Praveen Khandelwal said that at a time when in a recent judgement, the Delhi High Court has found Amazon guilty of violation of FDI policy and FEMA, the intervention of USIBC shows both Amazon and Walmart are trying every route for an embargo over proposed changes in Press Note. Bhartia and Khandelwal said that such a hue and cry is not understandable. CAIT said the government is not bringing any new law or policy and it is just trying to include Dos and Don'ts of the Press Note. Further scaling of any business can't be stopped by law or any policy. However, the scaling or growth in business has to be within the purview and parameters as defined in the policy or the law. "Why any entity should worry when the government is clarifying the policy?" CAIT asked. Bhartia and Khandelwal said that USIBC is mistaken in terming the business of these companies as an investment in India. The capital which these companies are using is meant to operate their business activities whose return in shape of revenue is accrued by these companies as their profit. Therefore, terming such capital as investment is factually wrong. CAIT said they are using this so-called investment as burning of capital to support their unethical business practices and also to violate the FDI policy of the government and the Foreign Exchange Management Act (FEMA). In a recent judgement of Delhi High Court, the court has taken on record that Amazon is violating FDI policy and FEMA, it added. SEE ALSO: <a href="https://www.businessinsider.in/business/news/one-thing-we-now-know-for-sure-is-in-the-budget-proposals-a-new-infra-lending-institution/articleshow/80600438.cms" data-type="tilCustomLink">One thing we now know for sure is in the budget proposals⁠— a new infra lending institution</a> <a href="https://www.businessinsider.in/budget/news/nirmala-sithraman-union-budget-2021-date-time-schedule-and-other-details-you-should-know/articleshow/80598178.cms" data-type="tilCustomLink" target="_blank">Union Budget 2021: Date, time, schedule and other details you should know</a> <a href="https://www.businessinsider.in/business/startups/news/a-golden-chance-for-startups-to-raise-a-funding-of-2-million-in-just-10-minutes-at-iit-bombays-e-summit-2021/articleshow/80598283.cms" data-type="tilCustomLink" target="_blank">A golden chance for startups to raise a funding of ₹2 million in just 10 minutes at IIT Bombay’s E-Summit 2021</a>

CAIT miffed with USIBC for intervening in India's e-commerce policy

New Delhi, In a significant development related to war between e-commerce giants and traders of India, the Union Government has directed the Enforcement Directorate and Reserve <keyword id="6355303" type="DOMAIN" weightage="20" keywordseo="bank-of-india">Bank of India</keyword> to take necessary action against <keyword id="18635" type="COMPANY" weightage="20" keywordseo="Amazon">Amazon</keyword> and Walmart-owned-Flipkart. The Centre has taken strong cognizance of various complaints made by the Confederation of All India Traders (CAIT) for <keyword id="2621917" type="PERSON" weightage="20" keywordseo="blatant-violation">blatant violation</keyword> of <keyword id="35066" type="ORGANIZATION" weightage="20" keywordseo="fdi-policy">FDI Policy</keyword> and Foreign Exchange Management Act, 1999 (FEMA) by these companies. CAIT National President B.C. Bhartia and Secretary General Praveen Khandelwal informed that on several complaints made by the CAIT to Union <keyword id="84" type="ORGANIZATION" weightage="20" keywordseo="Commerce">Commerce</keyword> Minister Piyush Goyal in the recent past against Amazon &amp; Walmart-owned-<keyword id="6354742" type="COMPANY" weightage="20" keywordseo="Flipkart">Flipkart</keyword>, the Department of Promotion of Industries and Internal Trade (DPIIT) of the Ministry of Commerce in its letter issued on December has asked both Enforcement Directorate and Reserve Bank of India to take necessary action against Amazon and Flipkart. Bhartia and Khandelwal said that in its communication to ED and RBI, the DPIIT has forwarded four complaints of CAIT including violation of FDI policy in deal between Flipkart and Aditya Birla Group, violation of FDI policy related to FDI in manufacturing which is being used for Multi Brand Retailing by various e-commerce companies, violation of FEMA and its rules by Amazon and blatant violation of FEMA and FDI Policy by Amazon and Flipkart and exploitation of loopholes by them. CAIT said that traders across Country will observe Year 2021 as "Bhartiya Vyapaar Samman Varsh" under the aegis of CAIT and all efforts will be made to clean the e-commerce landscape of India and an era of manipulations, mal-practices and exploitation will come to end and the CAIT will promote and encourage traders across Country to adopt digital commerce and digital payments as new instruments to widen the net of business in India. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/top-stocks-to-watch-tata-steel-vedanta-adani-green-tata-motors-maruti-mm-dhfl-v-mart-indian-bank-and-others/articleshow/80038635.cms">Top stocks to watch — Tata Steel, Vedanta, Adani Green, Tata Motors, Maruti, M&amp;M, DHFL, V-Mart, Indian Bank, and others</a> <a href="https://www.businessinsider.in/tech/mobile/news/checkout-the-list-of-upcoming-new-mobiles-in-january-2021-with-expected-price/articleshow/80039794.cms">Upcoming smartphones in India in January 2021</a> <a href="https://www.businessinsider.in/international/news/ten-of-the-most-outrageous-predictions-for-2021-according-to-saxo-bank/slidelist/80040045.cms">From Amazon buying Cyprus to Germany bailing out France — here are ten of the most ‘outrageous’ predictions for 2021</a> <a href="https://www.businessinsider.in/business/startups/news/india-edtech-in-charts-how-the-shi[%E2%80%A6]es-of-byjus-unacademy-and-others/articleshow/80040270.cms">India’s edtech in charts – How the shift to online learning meant money, valuation and users for the likes of BYJU’S, Unacademy, and others</a>

Amazon and Flipkart accused of violating FDI policy — Indian government asks RBI and ED to take action

<keyword id="163329" type="COMPANY" weightage="100" keywordseo="Levi-Strauss-Co">Levi Strauss &amp; Co</keyword>, the US-headquartered maker of the popular <keyword id="3321200" type="UNKNOWN" weightage="100" keywordseo="levis-denim">Levi's denim</keyword> jeans, wants to convert its existing local wholesale entities into retail, for which it has sought the permission of Indian government. Doing so, it has joined the <a href="http://www.businessinsider.in/10-new-insurance-companies-to-start-operations-in-India-soon/articleshow/51585962.cms">long list of foreign brands</a> that are seeking to gain from the changes in India’s FDI policies. 
 
As per reports, Levi Strauss &amp; Co had filed an application with the Department of Industrial Policy and Promotion under the Industry Ministry on April 11, seeking approval that its existing wholesale entities are allowed to engage in direct retailing and ecommerce. 
 
Also read: <a href="http://www.businessinsider.in/New-FDI-rules-to-upset-online-shoppers-no-more-promotional-offers-and-cash-backs/articleshow/51644272.cms">New FDI rules to upset online shoppers; no more promotional offers and cash-backs</a> 
 
Other apparel and casual wear brands that have sought the approval <a href="http://www.businessinsider.in/Samsung-to-soon-apply-for-single-brand-retail-licence-in-India/articleshow/50848515.cms">for direct retail</a> include Pepe Jeans, Adidas and Puma. 
 
It was in November 2015 that the government had relaxed the rules for <a href="http://www.businessinsider.in/Not-everything-can-be-termed-state-of-the-art-says-Indian-government-to-facilitate-FDI/articleshow/51628211.cms">FDI in retail</a>. The new rules allow manufacturers to sell their products through wholesale, retail and ecommerce channel as well. 
 
<a href="https://upload.wikimedia.org/wikipedia/commons/2/2e/HK_Yuen_Long_Plaza_Levi_s_Store_Ground_Floor.JPG">Image source</a>

Levi
Strauss wants to directly retail online and offline, writes to the government

<ul><li>The latest <keyword id="722308" type="PERSON" weightage="20" keywordseo="World-Investment-Report">World Investment Report</keyword> showed India dropping a spot to 10th, in the list of top FDI receiving countries.</li><li>India’s witnessed 6% growth in FDI, to reach $42 billion in 2018.</li><li>Global FDI inflows slipped by 13%, from $1.5 trillion to $1.3 trillion, South Asia witnessed 3.5% increase in FDI inflows.</li><li>China, which retained the number two position, received the highest foreign inflows among the developing countries at an all time high of $139 billion, a growth of 4%. </li></ul>Despite a 6% surge in its <keyword id="44749" type="ORGANIZATION" weightage="20" keywordseo="Foreign-Direct-Investment">Foreign Direct Investment</keyword> (FDI) inflow in 2018, India slipped a spot in the list of countries receiving highest FDI, to 10th. The latest <a href="https://unctad.org/en/pages/DIAE/World%20Investment%20Report/WIR-Series.aspx">World Investment report</a> of the United Nations Conference on Trade &amp; Investment (<a href="https://unctad.org/en/Pages/Home.aspx">UNCTAD</a>), an organization that aims at maximizing trade, investment and development opportunities of developing countries. The increase in FDI inflows is being attributed to manufacturing, communication and financial services sectors, which were the top three FDI recipients in India. Growth in cross-border mergers and acquisitions -- from $23 billion in 2017 to $33 billion in 2018 -- was primarily due to retail trade, which includes e-commerce, and telecommunication, said the report. The $16 billion<a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/walmart-acquires-flipkart-for-16-bn-worlds-largest-ecommerce-deal/articleshow/64095145.cms"> acquisition </a>of Flipkart by Walmart, and telecommunication deals worth $2 billion involving Vodafone and American Tower, were among the major deals this year. The report also highlighted the changes to India’s FDI policy, which it termed as “restrictive.” In February 2019, India introduced changes to its e-commerce sector where it banned foreign companies to sell their own products in e-commerce marketplace companies like Amazon. Global FDI slowdown Global FDI flows fell by 13% in 2018 from $1.5 billion in 2017 to $1.3 billion in 2018, which is the third consecutive annual decline, according to UNCTAD’s World Investment Report. The contraction was largely precipitated by United States multinational enterprises (MNEs) repatriating earnings from abroad, making use of tax reforms introduced by the country in 2017, designed for that purpose. Developed countries were the worst hit by the earnings repatriation, where flows fell by a quarter to $557 billion-levels last seen in 2004. South Asia surges ahead As global FDI inflows slump down, South Asia witnessed a <a href="https://economictimes.indiatimes.com/news/economy/indicators/fdi-flows-to-india-grew-6-in-2018-to-42-bn-un-report/articleshow/69761999.cms?utm_source=ETTopNews&amp;utm_medium=HP&amp;utm_campaign=TN&amp;utm_content=23">growth</a> of 3.5% to $54 billion in FDI inflows. "All subregions in developing Asia are expected to receive higher inflows. Prospects are underpinned by a doubling in value of announced greenfield projects in the region, suggesting continued growth potential for FDI," it said while sounding a note of caution on global uncertainties. It said uncertainties stemming from global trade tensions could weigh on the mood in the region.

India has slipped to the 10th spot in attracting foreign direct investment

Looks like <keyword id="6354743" type="COMPANY" weightage="100" keywordseo="Amazon-India">Amazon India</keyword> doesn’t want to get into any sort of problems with the Indian government regarding the FDI rules. This is why the e-commerce giant is looking forward to new merchants to sell the most popular products. 
 As per the <keyword id="3489921" type="UNKNOWN" weightage="100" keywordseo="changed-FDI-rules">changed FDI rules</keyword>, any single merchant can’t do more than 25% of the total sales for an e-commerce company. In case of <keyword id="18635" type="CITY" weightage="100" keywordseo="Amazon">Amazon</keyword>, up until now, Cloudtail, owned by a JV between Amazon Asia and NR Narayana Murthy, used to be the largest merchant selling most of its popular products. However, as the Indian government announced these new regulations in April, the Seattle-based company has started looking at other merchants, says a report by <a href="http://economictimes.indiatimes.com/small-biz/startups/amazon-turning-to-fresh-crop-of-merchants-for-selling-popular-products-on-its-online-platform/articleshow/53182275.cms">ET</a>. 
 
Also read: <a href="http://www.businessinsider.in/India-has-allowed-100-per-cent-FDI-in-food-ecommerce-and-a-warzone-has-already-been-formed/articleshow/52848943.cms">India has allowed 100 per cent FDI in food ecommerce and a warzone has already been formed</a> 
 
Online retailers in India have said that they already comply with the rules and don’t own any inventory; however, all of them have their own merchants, like <a href="http://www.businessinsider.in/WS-Retail-triples-its-turnover-to-combined-sales-of-Shoppers-Stop-Future-Lifestyle-Trent-Pantaloons/articleshow/49609059.cms">WS Retail</a> for Flipkart and Cloudtail for <a href="http://www.businessinsider.in/These-charts-show-why-Amazons-throwing-5-billion-into-the-Indian-market/articleshow/52980168.cms">Amazon</a>, which make up a major part of their sales. 
 
As per a Mint <a href="http://www.livemint.com/Companies/7wDzIby73qDkTiEyWYnAyH/Flipkart-firms-up-plans-to-comply-with-ecommerce-FDI-norms.html">report</a>, even <a href="http://www.businessinsider.in/Amazon-India-is-much-ahead-of-Flipkart-in-overall-web-traffic/articleshow/52886403.cms">arch rival Flipkart</a> has decided to include four new sellers in its merchant base so that its dependence on WS Retail can be reduced. 
 
Talking of Amazon, it has added Cart2India Online, Amiable Electronics, Apptronics Retail, E-Mobiles, Okay Enterprises, GreenMobiles and S&amp;S Company as its primary sellers, selling smartphones exclusively available on Amazon. 
 
The move has come at the right time, since the <a href="http://www.businessinsider.in/Ahead-of-festive-season-AmazonIndia-invests-in-six-new-fulfillment-centres/articleshow/53112025.cms">Indian festive season</a> is about to begin, and Amazon would want to be ahead of its <a href="http://www.businessinsider.in/Flipkart-doesnt-want-to-bungle-up-Big-Billion-Day-sale-in-October-many-changes-expected/articleshow/53057734.cms">rivals</a>. 
 
<a href="http://www.todayonline.com/sites/default/files/styles/photo_gallery_image_lightbox/public/2016-02-05T174345Z_1_LYNXNPEC1412T_RTROPTP_3_AMAZON-RESULTS.JPG?itok=6XYIxF3C">Image source</a>

You Searched For "FDI in retail" and got 13 results

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CAIT miffed with USIBC for intervening in India's e-commerce policy

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Amazon and Flipkart accused of violating FDI policy — Indian government asks RBI and ED to take action

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Levi Strauss wants to directly retail online and offline, writes to the government

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