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New Delhi, The government on Wednesday eased <keyword id="19946825" type="General" weightage="20" keywordseo="foreign-direct-investment" source="keywords">Foreign Direct Investment</keyword> (<keyword id="19946824" type="General" weightage="20" keywordseo="fdi" source="keywords">FDI</keyword>) norms in the space sector by allowing 100 per cent overseas investment in making components for satellites, as part of efforts to attract overseas players and private companies into the segment. The decision was taken at the <keyword id="19901283" type="General" weightage="20" keywordseo="cabinet" source="keywords">Cabinet</keyword> meeting chaired by Prime Minister <keyword id="19895781" type="General" weightage="20" keywordseo="narendra-modi" source="keywords">Narendra Modi</keyword>. Now, the satellite sub-sector has been divided into three different activities with defined limits for foreign investment in each such sector, according to an official statement. Presently, FDI in the space sector is allowed up to 100 per cent in the area of satellite establishment and operations through government route only. By changing the current policy, the government has allowed up to 74 per cent FDI under automatic route in satellites-manufacturing and operation, satellite data products, and ground and user segments. Beyond this limit, government approval will be required in these areas for FDI, it said. Up to 49 per cent FDI is allowed through the automatic route for launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft. Beyond 49 per cent, FDI in these activities would require government approval, it added. Further, up to 100 per cent overseas investments are permitted under the automatic route for manufacturing of components and systems/sub-systems for satellites, ground and user segments. This increased private sector participation would help generate employment, enable modern technology absorption and make the sector self-reliant. It is expected to integrate Indian companies into global value chains. Through the decision, the government seeks to liberalise the FDI policy provisions in the space sector by prescribing easy entry routes and providing clarity for overseas investments in satellites, launch vehicles and associated systems or subsystems, creation of spaceports for launching and receiving spacecraft and manufacturing of space-related components and systems. With this, companies will be able to set up their manufacturing facilities within the country, duly encouraging Make In <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword> initiatives of the government.

Govt eases FDI norms in space sector; 100% in making components for satellites

<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

<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

New Delhi, Mar 11 () A parliamentary panel on Wednesday expressed concerns over decline in foreign direct investment (FDI) in the manufacturing sector and recommended to address these issues to make India an attractive destination for investments. The Department-Related Parliamentary Standing Committee on Commerce said the FDI equity inflow in manufacturing is declining and the sector's share in the total FDI inflow in 2018-19 was around 23 per cent "which is very low". It said the "low inflow of FDI in the manufacturing sector defeats the very purpose of Make in India scheme". It recommended the commerce department to take concerted efforts to increase the share of manufacturing sector in FDI inflows. It said that in the past five-and-a-half years (April 2014-September 2019), India received FDI inflows worth USD 319 billion, which is 50 per cent of the total FDI inflow (USD 642 billion) in the past over 19 years since April 2000. It also asked for fast disposal of 51 pending cases of FDI proposals. "The committee, while appreciating the liberal and investment-friendly policies adopted by the government, recommends to take necessary precautions/ steps to ensure that the liberal policies are not exploited by some unscrupulous investors and institute a stringent mechanism to check the misuse of FDI for routing black money in the guise of FDI," it said. Besides, the report stated that a large chunk of FDI inflow is captured by a few states while majority of them witness a minimal inflow of FDI. It recommended the government to take necessary steps to increase the inflow of FDI into the lean states to ensure balanced growth so that there is no regional disparity in development. Further, it asked the department to be vigilant about the domestic sourcing norms and ensure that they are strictly adhered to by the multinational corporations so that the intended benefits are accrued to the target groups. "The committee recommends to address the concerns raised by the domestic retailers and indigenous traders in a structured manner through its retail trade policy which is supposedly under preparation," the report added. The report also said necessary steps need to be taken to ensure that the liberalisation of the coal sector provides the required impetus to the sector. It called for concerted efforts for revival of the industrial sector with focus on mining, manufacturing and electricity sectors given their importance in the economy and to address declining capacity utilisation of the manufacturing sector considering its impact on investment and job creation. On the proposed new industrial policy, it suggested for finalising the policy at the earliest in tune with changing global scenario. On intellectual property rights, the committee stressed the need to further reduce the time for examination and disposal of patents to match the international standard, create awareness among various stakeholders and fill the sanctioned posts of patent examiners and controllers at the earliest. Taking note of the World Bank's Doing Business Report, 2020, which ranks India at 63rd among 190 countries, it said sustained measures need to be taken for further improvement. Further, for start-ups, it suggested to increase registration of start-ups in Government e-Marketplace portal, facilitate establishment of start-ups in those states with dismal record, address the issue of insignificant drawing of funds from the Fund of Funds Scheme and operationalisation of Credit Guarantee Scheme to ease the availability of credit. "Expressing concern over the delay in payment by the PSUs (public sector undertakings) and the government departments to the start-ups, the committee recommended to increase procurement and payment of dues within a stipulated time period," it said. RR HRS

Par panel expresses concerns over dip in FDI in manufacturing sector

New Delhi, Jan 1 () Foreign direct investment into India grew 15 per cent to USD 26 billion during the first half of the current financial year, according to government data.
 Inflow of foreign direct investment (FDI) during April-September of 2018-19 stood at USD 22.66 billion.
 Sectors, which attracted maximum foreign inflows during April-September 2019-20, include services (USD 4.45 billion), computer software and hardware (USD 4 billion), telecommunications (USD 4.28 billion), automobile (USD 2.13 billion) and trading (USD 2.14 billion), the commerce and industry ministry data showed.
 Singapore continued to be the largest source of FDI in India during the first half of the financial year with USD 8 billion investments. It was followed by Mauritius (USD 6.36 billion), the US (USD 2.15 billion), the Netherlands (USD 2.32 billion), and Japan (USD 1.78 billion).
 FDI is important as the country requires major investments to overhaul its infrastructure sector to boost growth.
 Recently, the government relaxed foreign investment norms in sectors such as brand retail trading, coal mining and contract manufacturing.
 Enthused by a record foreign investment inflow, India is optimistic of continuing to be one of the world's favourite FDI destinations in 2020 on the back of Prime Minister Narendra Modi-led government's liberalised norms and a significant jump in the ease of doing business ranking.
 Department for Promotion of Industry and Internal Trade (DPIIT) Secretary Guruprasad Mohapatra has said that despite a slowdown in the global economy, inflows of foreign investment into the country have not been impacted. RR HRS

FDI rises 15 pc during Apr-Sep to USD 26 bn

New Delhi, Feb 7 () Total foreign direct investment in the drugs and pharmaceutical sector in the country rose to Rs 2,065 crore during April to September period of fiscal year 2019-20, Parliament was informed on Friday. The foreign direct investment (FDI) equity inflow in the drugs and pharmaceutical sector stood at Rs 1,842 crore in FY 2018-19, Minister of State for Shipping and Chemicals &amp; Fertilizers Mansukh Mandaviya said in reply to a question in the Rajya Sabha. FDI in the sector was at Rs 6,502 crore in 2017-18, Rs 5,723 crore in 2016-17, Rs 4,975 crore in 2015-16 and Rs 9,052 crore in 2014-15, he added. To attract larger FDI in the pharmaceutical sector, the government reviews FDI policy on an ongoing basis with a view to liberalise and simplify it progressively and improve the country's investment climate by providing ease of doing business, Mandaviya said. Also, various measures are taken under 'Make in India' initiatives facilitating investment, fostering innovation and thereby promoting robust business environment in the country, he added. "The drugs and pharmaceuticals sector is witnessing an era of unparalleled growth and innovation. Drugs and pharmaceuticals are India's largest sectors- both in terms of revenue and employment," Mandaviya said. The government amended the FDI policy on pharmaceutical sector in June 2016 by allowing 100 per cent FDI for greenfield pharmaceutical projects and up to 74 per cent FDI for brownfield pharmaceutical projects through the automatic route and beyond that through government's approval, he added. FDI is largely a matter of private business decisions and inflows depend on a host of factors such as availability of natural resource, market size, infrastructure, political and general investment climate as well as macro-economic stability and investment decision of foreign investors, Mandaviya added. AKT ABM

FDI in drugs & pharma sector rose to Rs 2,065 cr in April-Sept FY20: Govt

Online marketplace <keyword id="18635" type="CITY" weightage="100" keywordseo="Amazon">Amazon</keyword> is all set to start delivering farm produce, lentils and milk to its customers in India, once it gets the <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">government's approval</a> for its wholly-owned foods unit. 
 
It was in 2007 that <a href="http://www.businessinsider.in/Amazon-might-be-on-the-verge-of-dominating-a-795-billion-industry/articleshow/51986500.cms">Amazon</a> had started <keyword id="2421691" type="UNKNOWN" weightage="100" keywordseo="Amazon-Fresh">Amazon Fresh</keyword> to deliver a limited selection of <keyword id="389479" type="UNKNOWN" weightage="100" keywordseo="groceries">groceries</keyword> to its customers in Seattle, where it’s based, and a decade later, Amazon is waiting for the <keyword id="44749" type="ORGANIZATION" weightage="100" keywordseo="Foreign-Direct-Investment">Foreign Direct Investment</keyword> approval to be able to do that in India. 
 
Also read: <a href="http://www.businessinsider.in/amazon-to-come-up-with-a-brick-and-mortar-store-in-india/articleshow/57182761.cms">Amazon to come up with a brick and mortar store in India</a> 
 
"We will maintain the entire supply chain directly and right sourcing will be the key. Such value was not possible to be delivered had the government not liberalised the FDI policy," Saurabh Srivastava, Director of <a href="http://www.businessinsider.in/india-fmcg-sector-has-lost-rs3840-crore-last-month-thanks-to-demonetization/articleshow/56155564.cms">FMCG</a> category management at Amazon told <a href="http://economictimes.indiatimes.com/small-biz/startups/amazon-awaits-fdi-approval-to-deliver-groceries-at-doorstep/articleshow/57400643.cms">ET</a>. He added that the products would be directly bought from farmers. 
 
Also read: <a href="http://www.businessinsider.in/Amazon-Prime-is-now-available-in-India-at-Rs-499-per-year/articleshow/53391488.cms">Amazon Prime is now available in India at Rs 499 a year</a> 
 
Internationally, Amazon Fresh has seen success in the US, UK and Europe. 
 
(Image source: FierceRetail)

Amazon could be delivering groceries to your doorstep after FDI approval

The process of taking back government’s last remaining controls in the foreign direct investment (<keyword id="44528" type="ORGANIZATION" weightage="20" keywordseo="FDI">FDI</keyword>) framework has begun, which would result in the <keyword id="62529" type="ORGANIZATION" weightage="100" keywordseo="Foreign-Investment-Promotion-Board">Foreign Investment Promotion Board</keyword> (FIPB) being <a href="http://www.businessinsider.in/union-budget-2017-it-becomes-easy-to-invest-in-india-with-the-abolishment-of-fipb/articleshow/56913358.cms">taken down</a>, as announced by <keyword id="6355261" type="POSITION" weightage="20" keywordseo="Finance-minister">finance minister</keyword> <keyword id="42575" type="PERSON" weightage="20" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> in his February 1 budget. 
 
The department of economic affairs (DEA) has passed a draft Cabinet note for inter-ministerial consultation regarding this matter, which also proposes the responsibility of all foreign investment in sectors that require prior approval will be given to the relevant administrative ministry, department or regulator. 
 
Also read: <a href="http://www.businessinsider.in/good-news-for-investors-new-and-simpler-fdi-reforms-are-coming-in-defence-telecom-and-broadcasting/articleshow/57444146.cms">Good news for investors! New and simpler FDI reforms are coming in defence, telecom and broadcasting</a> 
 
This would lead to faster approvals, eliminating the need for multiple clearances. 
 
Also, licensing for insurance, defence manufacturing or broadcast etc. would be a one-time thing, not requiring separate screening for individual orders. 
 
While DEA note prescribes a deadline for proposals to be received by the board and handheld before ministries take over, DIPP is in favour of handing over proposals immediately to ministries and departments. 
 
Also read: <a href="http://www.businessinsider.in/FDI-rises-53-in-last-two-years/articleshow/53451653.cms">FDI inflows have risen 53% over last two years, says Finance Minister</a> 
 DIPP is responsible for the FDI policy while DEA houses the FIPB and also administers the <keyword id="6368276" type="COMPANY" weightage="20" keywordseo="Foreign-exchange">Foreign Exchange</keyword> Management Act along with RBI. 
 
"We have now reached a stage where FIPB can be phased out," Jaitley had said in his budget speech. "We have therefore decided to abolish the FIPB in 2017-18." 
 
Over the last two years, there have been <a href="http://www.businessinsider.in/FDI-Reforms-a-tale-of-too-much-caution/articleshow/53617743.cms">several reforms</a> in the FDI policy, liberalising it so that <a href="http://www.businessinsider.in/government-to-attract-62-billion-investment-from-indian-and-foreign-companies/articleshow/57537469.cms">more and more investors</a> can be attracted to the country. 
 
(Image source: DreamGains)

Foreign Investment Promotion Board might be scrapped! FDI to be free of all govt controls

<keyword id="6354553" type="COMPANY" weightage="100" keywordseo="real-estate">Real Estate</keyword> sector has been stagnant and unregulated for years now. Rising prices of property, delayed construction, no clarity on Foreign Direct Investment and REITS, ghost buyers are some of problems crippling the growth of the sector. But with the various ambitious projects announced by the new Modi Government there’s a silver lining. As per recent government data, economic growth reached 7.4% in the second quarter of the current financial year, riding on a spike in manufacturing and a pickup in investment. 

	Where it stands?
 Globally positioning India as an investment destination and improving India’s diplomatic and trade relation, Narendra Modi’s foreign stints have helped India attract more <keyword id="44528" type="ORGANIZATION" weightage="100" keywordseo="FDI">FDI</keyword>. From the nations he visited during the financial year 2014-15, India received FDI of USD 19.78 billion. Moreover, FDI in India increased by 27% in 2014-15 to USD 30.93 billion, said Anuj Puri, Chairman and country head at JLL India in his blog. But a recent <keyword id="6355001" type="CITY" weightage="100" keywordseo="FICCI">FICCI</keyword> survey of the year 2015 (Impact of FDI reforms in the Indian real estate sector) shows how disoriented the sector still is. Though there has been overall growth in FDI in the sector, FDI in construction development sector has declined over the past few years. The following table shows that. 

	
 

	Overall sentiment happy
 Still revival hopes are high! The real impact of latest FDI liberalisation measures on foreign <keyword id="6362476" type="ORGANIZATION" weightage="100" keywordseo="investments">investments</keyword> in Indian real estate will be reflected over a period of time, the industry feels, as per the survey. 

	1. Industry is happy and satisfied with current FDI reforms in construction development sector 
 

	Majority are happy with the recent steps of the Central Government and are satisfied with the policy development. 
 

	2. Increased confidence and optimism in industry towards future flow of FDI in real estate 
 Industry has shown high level of confidence and optimism towards future flow of <keyword id="136566" type="UNKNOWN" weightage="100" keywordseo="foreign-capital">foreign capital</keyword> into realty sector. They feel that FDI reform measures will certainly increase flow of FDI into realty sector in coming months. 

	3. Commercial &amp; Retail and Residential real estate will gain significantly from the liberalisation of FDI in the sector
 

	4. 100% FDI under automatic route in completed projects
 

	100% FDI under automatic route in completed projects for operation and management of townships, malls/shopping complexes and business centres is a significant step taken by the Government, the industry feels.
 

	What more should be done in the upcoming <keyword id="2783177" type="UNKNOWN" weightage="100" keywordseo="Budget-2016">budget 2016</keyword>?
 

	1. Quick implementation of the Real Estate Regulatory Bill (RERA) to enable the <keyword id="46631" type="UNKNOWN" weightage="100" keywordseo="Realty-market">realty market</keyword> to attract FDI 

	2. Government of India should bring more clarity over the entry and exit norms and processes to be followed by investors. 
 

	3. Both Centre and State must work together to ensure removal of bottlenecks for faster implementation of reform measures for foreign investments in real estate. 
 

	4. Government of India could also consider a reduced lock-in-period applicable for FDI investments from 3 years currently to 1-2 years to further enhance investor interests. 
 

	The real estate industry is maturing. There is a wedge between demand and supply of housing. However, with increased market transparency, this demand/supply mismatch can offer immense opportunities for developers and investors alike. But a well regulated and consolidated industry is not a near future dream. 
	 
	(Image credits: FICCI, indiatimes)

Budget 2016: Impact of FDI in real estate sector and future expectations

The <keyword id="6354851" type="ORGANIZATION" weightage="20" keywordseo="Retail">retail</keyword> <keyword id="6354553" type="COMPANY" weightage="20" keywordseo="real-estate">real estate</keyword> market has a reason to cheer. This real estate segment is expected to receive <keyword id="34499" type="POSITION" weightage="20" keywordseo="private-equity">private equity</keyword> investments worth $70-$80 million in this year primarily because of the relaxation in government policies. 
	 
	“In 2016, PE may also go into select mall investments, especially in under-represented markets or for buyout of mature assets. JLL was the first to say that single-brand retail companies will find more reason to explore the Indian market thanks to relaxation of sourcing norms and that technology-led retail will start and in single brand retail store category in 2016. These companies will also be able to undertake eCommerce business independently,” said Anuj Puri, country head for JLL India. 
	 
	He added, “Moreover, as quality mall space is coming up with strong pre-commitments, it indicates that retailers continue to remain bullish about the long-term India consumption story. Retailers are already starting to experiment with the formats, sizes for the same brands – adapting to markets – as they start moving up the value chain.” 
	 
	However, not all will be hunky dory for the segment. Puri noted that the real estate space in retail will continue to lack quality. The retailers will have to revamp their real estate strategy in order to suit the micro-markets. “Investment by both home-grown and international brands will strengthen in tier-II and tier-III markets as they expand beyond tier-I cities. Investment by large players will also be seen in 2016,” he said. 
	 It should be noted that the <keyword id="44528" type="ORGANIZATION" weightage="20" keywordseo="FDI">FDI</keyword> inflow in retail trading went up between October 2014 and September 2015 to $70.75 million. Apart from this, strong economic stability, liberalisation of the FDI policy and improvement in the consumer sentiment, is expected to pump the investments in the real estate sector by global brands.

And here’s why real estate in retail can expect PE investments up to $80 million

Top brick and mortar retailers have moved the <keyword id="6355014" type="ORGANIZATION" weightage="80" keywordseo="Delhi-High-Court">Delhi High Court</keyword> against the <keyword id="6357307" type="ORGANIZATION" weightage="80" keywordseo="Central-Government">Central Government</keyword>, demanding change in Foreign Direct Investment (<keyword id="44528" type="ORGANIZATION" weightage="60" keywordseo="FDI">FDI</keyword>) norms vis-a-vis eCommerce players in the wake of rapid growth of online shopping. 
 The case was filed by <keyword id="113282" type="ORGANIZATION" weightage="80" keywordseo="Retailers-Association-of-India">Retailers Association of India</keyword> (RAI), which represents top retailers such as <keyword id="44949" type="CITY" weightage="80" keywordseo="Future-group">Future Group</keyword>, Shoppers Stop and <keyword id="58448" type="COMPANY" weightage="60" keywordseo="Reliance-Retail">Reliance Retail</keyword>. 
 "We are demanding parity," said lawyer <keyword id="106922" type="PERSON" weightage="80" keywordseo="Abhishek-Manu-Singhvi">Abhishek Manu Singhvi</keyword>, who represents the country's largest lobby of organised retailers. 
 
This is the second such method adopted by physical retailers against the government in the past six days. The country's branded stores operators did not attend a meeting convened last week by the ministry of commerce and industry to discuss FDI in eCommerce. 
 Sales of brick-and-mortar retailers have declined after eCommerce companies such as Flipkart, Snapdeal and <keyword id="18635" type="CITY" weightage="80" keywordseo="Amazon">Amazon</keyword>.in have made major inroads into the retailing business in India by offering unprecedented discounts. 
 
While India bars FDI in eCommerce companies selling products directly to consumers, it allows foreign companies to operate the so-called eCommerce marketplace that lends its platforms for other companies to sell their products. 
 
"On paper, eCommerce can't have foreign direct investment. However, a whole lot of marketplaces are effectively retailing," Kumar Rajagopalan, chief executive at RAI, told the Economic Times. 
 
"It is a convenient method of saying they are marketplaces, but they can get as much FDI they want. So there is no level playing field in India," he said. 
 Flipkart and Snapdeal have attracted billions of dollars in funding by operating such marketplaces while US-based <keyword id="6391410" type="CITY" weightage="80" keywordseo="Amazon-com">Amazon.com</keyword> has set up a fully owned subsidiary here and has pledged to invest $2 billion in India. 
 
Physical retailers want a level playing field for both and want equal policies for both the offline and online channels. 
 
Analysts, however, say that even if India allows similar policies for both offline and online retailers, store operators can’t attract the kind of investor response as eCommerce. 
 
Even though India opened the retail business for global supermarkets in 2012 by allowing them to own up to 51% in local ventures, the showpiece liberalisation policy has discouraged a number of companies including clearance from state governments, mandatory 30% sourcing from small vendors and upfront investment of at least $100 million. 
 
Because of such conditions retailers have not been able to get any fund amid so many clauses. 
 
eCommerce companies have been spending millions of dollars in discounting products and large scale advertising to lure consumers, while physical retailers, which pay heavy rentals and have other establishment costs, say it's very difficult to compete with online retailers. 
 
(Image: Reuters)

You Searched For "FDI liberalisation" and got 11 results

Govt eases FDI norms in space sector; 100% in making components for satellites

PTI

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

IANS

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

Par panel expresses concerns over dip in FDI in manufacturing sector

PTI

FDI rises 15 pc during Apr-Sep to USD 26 bn

PTI

FDI in drugs & pharma sector rose to Rs 2,065 cr in April-Sept FY20: Govt

PTI

Amazon could be delivering groceries to your doorstep after FDI approval

BI India Bureau

Foreign Investment Promotion Board might be scrapped! FDI to be free of all govt controls

BI India Bureau

Budget 2016: Impact of FDI in real estate sector and future expectations

Usha Rani Das

And here’s why real estate in retail can expect PE investments up to $80 million

Purba Das

Indian retailers have declared war against FDI and e-tailers. Know more

BI India Bureau

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