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“Smaller And Mid-Sized Ecommerce Companies Are Being Sidelined” : Ecomm Association On B2B Vs. B2C FDI

The Ecommerce Association of India (ECAI) is urging the government to at least review a partial opening of the sector to FDI.
The association has welcomed the government’s announcement on the implementation of the Goods and Service Tax (GST). It has however sought for the government in the interim to create a more liberal tax environment for Ecommerce companies in the states.
“The Prime Minister’s visions of Digital India and Make in India can only materialize if Ecommerce is allowed to operate in a free, open and equal environment.  Currently Ecommerce is only partially liberalized with B2B being opened for 100% foreign investment, while B2C has been prohibited from any FDI. 
The partial liberalization of the sector has made many investors apprehensive of the long-term growth and sustainability of the sector. While a few large players have managed to get funding and are able to dominate the sector, the smaller and medium sized Ecommerce players are getting side-lined and options for customers are reducing. We hope that the government will create a liberal and clear policy on Ecommerce enabling foreign investment in the business to consumer (B2C) inventory led model .” [Zuhaib Khan, Co-founder, Shopatplaces]
We hope that the government will create a liberal and clear policy on Ecommerce enabling foreign investment in the business to consumer (B2C) inventory led model .” [Zuhaib Khan, Co-founder, Shopatplaces]

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