- Regulation:
- E-commerce firms can operate under marketplace or inventory-based models.
- 100% FDI allowed in marketplace model, but not in inventory-based.
- Government clarified FDI policy in Dec 2019 to prevent skewing the playing field.
- Vendors with e-commerce company stake cannot sell on that portal.
- Firms cannot mandate exclusive selling or influence product prices.
- Promotion:
- E-commerce is seen as an excellent platform for MSMEs to expand.
- It opens global markets for various product categories.
- Amazon partnered with Indian MSMEs to help them sell online.
- The text mentions India has not been a party to WTO e-commerce negotiations.