Foreign and domestic companies with manufacturing units will most likely be able to sell their products via online portals to the consumers directly. The Union cabinet is contemplating on the decision and will announce it tomorrow.
The move will boost the manufacturing sector as it’ll give the customers an easier access to the products sold by companies with manufacturing units. The manufacturing companies with an FDI of up to 100% will also be permissible to sell their products online.
Finance minister Arun Jaitley said that the companies with manufacturing units will be permitted to sell directly to the customers. From the FDI’s angle, the government is trying to make it much more hassle free.
Currently, selling of goods by companies with manufacturing units was allowed in B2B and not in B2C. Now, the Department of Industrial Policy and Promotion has proposed a new principle in accordance with the Income Tax Act that will allow multiple brands to sell directly to their customers. The move will have an impact on the contribution of manufacturing in GDP and is likely to go up from 16% to 25% in the span of the next ten years and increase the number of jobs as well (via).
All this comes from the ‘make in India’ campaign whose underlying motive is to improve the ease of doing business in the country.