100% FDI in ecommerce an encouraging move; time to bring in level playing field for offline models too

The government needs to hike this to 100% so as to truly bring about a level playing field between offline and online models The DIPP has at last demystified its FDI policy on ecommerce that is such a rage operationally though serious rethink is taking place behind the close doors of corporate boardrooms of these companies in the face of high burnout rates and the inevitable shakeout that stares out at the weak among them after the bandwagon effect. The Commerce and Industries Minister Nirmala Seetharaman promised almost two years ago to look into the issue of unintended leg up being given to FDI in ecommerce vis-à-vis brick and mortar stores whose businesses have suffered a serious erosion thanks mainly to the liberal discounts their bête noire, the ecommerce portals, are able to offer. The government needs to hike this to 100% so as to truly bring about a level playing field between offline and online models. The 50% backend investments mandated by the government’s FDI policy on multi brand retail would indeed go some way in spurring rural investments in cold storage, food processing industries and dairies besides staunching criminal wastage and loss to elements.