Government to set up committee on norms for FDI in e-commerce
FollowThe committee, headed by the NITI Aayog CEO Amitabh Kant, will formulate certain policy guidelines with respect to Foreign Direct Investments in e-commerce, an industry that’s growing at lightning speed in India
"It will look at all the issues including FDI pertaining to the e-commerce sector. The committee would suggest ways to further promote the growth of the sector," an official told PTI.
The proposed committee will formulate policy guidelines with respect to foreign direct investments intended in e-commerce as well as address taxation issues.
Representatives from four states, including Karnataka, the IT hub, would be in the committee. Senior officials from Commerce, Industry, Information Technology and Tax departments would be members in the panel.
The Karnataka government had earlier raised certain objections and the proposed committee has promised to look into these clauses.
Some e-commerce firms are facing taxation related problems in few states. Also, certain e-commerce companies have been venturing into the medical space, selling pharmaceuticals online, creating a certain level of discomfort.
Setting up of this panel also assumes significance, as the government has recently permitted 100% FDI in food processing sector.
The e-commerce industry of India is growing by leaps and bounds and the present $ 30 billion mark in 2016 is likely to touch $ 120 billion by the year 2020.
