Representatives from domestic and global e-commerce companies and Indian industry chambers met officials from the Commerce & Industry Ministry on Thursday to discuss the pros and cons of opening up the sector to foreign investment.

Officials from e-retailers such as Flipkart, Amazon and eBay, as well as members from CII and FICCI, presented their views to Department of Industrial Policy & Promotion (DIPP) Secretary Amitabh Kant.

The DIPP had put up a discussion paper on allowing FDI in e-commerce early this year that had received about 100 comments. It had said that while FDI in the sector would boost infrastructure development and spur manufacturing facility it could lead to large-scale job losses.

“We wanted to understand the challenges for e-commerce. Most stake holders support FDI in e-commerce. The objective is to see how we push manufacturing sector through e-commerce,” Kant told reporters.

One more meeting is needed with stakeholders to take final decision, he added. While the UPA Government seemed keen to allow FDI in e-commerce, it delayed a decision on the matter as it was seen as politically sensitive.

A final decision on FDI in e-commerce will now be taken by the new Government. The results of the Lok Sabha elections will be announced on Friday.

India’s FDI policy restricts e-commerce companies from offering services directly to retail consumers.

At present, 100 per cent FDI is allowed in business-to-business (B2B) e-commerce but not in retail trading.

The UPA’s decision to allow 51 per cent FDI in multi-brand retail faced a lot of opposition from various sections, especially traders. If the BJP comes to power, it may reverse the decision as it has publicly said that it is against the policy.

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