FDI in eCommerce
FDI in retail in India is good or bad use to be a matter of discussion few days back but with time the topic died and File of FDI in retail sector has been changing government tables with changes some time in Parliament , sometimes in state assemblies. Discussion had not matured enough and an eCommerce system came into picture which attracted many investors and companies like BigBazar , Reliance stores lost a huge share to these Jean and T-shirt guys. Even Kishore Biyani had to put statements , right or wrong , left or right, I do not know but what I came to understand that this FDI in eCommerce will remain an important topic of discussion ant the time when FlipKart , Snapdeal have changed purchasing behavior of clients.
International Players like Amazon , Ali baba also want to enjoy Indian growth pie and are either planning to invest heavily or investing heavily
in eCommerce market.
With investments increasing everyday in eCommerce market Flipkart net investment till date has crossed about 1.75 billion $ , although other eCommerce players like snapdeal , hike , olx , quikker were not that lucky but they also enjoyed and are enjoying FDI shares and talks are hot enough in market that amazon is planning to buy Jabong.
But now since enforcement directorate have cleared Bansal’s (founders of Flipkart) against any wrong doings in FDI process of Flipkart , they have gone against it and are vocal enough to lobby against further FDI in eCommerce market.
Recently Amazon has realized that its international strategies are not working in India and it tried to stop funding of FlipKart but was not successful and thus it has planned to invest another $2 billion in Indian eCommerce market. This news has given sleepless night to many small Indian eCommerce companies but one thing is clear , Market is going to prosper.
Jack Ma , founder of Ali BaBa has recently proposed to invest in India and increase portfolio of Alibaba. How tough situation will remain for Indian companies during FDI in eCommerce market is yet to be understood but one thing is clear. Now the talk of town is going to be FDI in eCommerce not FDI retail.
Time will tell how government responds to demands of different stake holders in field of ecommerce but , it will be too early for any one to ask to stop FDI in eCommerce market and if Flipkart tries to stop further FDI investment in Indian eCommerce market , it will be nascent even for Bansals to think about stopping FDI.
India’s population of 1.25 billion has lots of potential for FDI and Indian government should not think of putting any further tough regulations which will act as hindrance.