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Published
Jan 1, 2019
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CAIT calls for online FDI norms to be applied to domestic online businesses

Published
Jan 1, 2019

The Confederation of All India Traders (CAIT) has called for the new foreign direct investment (FDI) policy update to be applied to domestic e-commerce businesses to stop unethical business practices.

Traders body CAIT asks government to apply FDI policy to domestic businesses


On December 31, 2018, CAIT communicated to the Minister of Commerce and Industry Suresh Prabhu that it is vital that the upcoming draft e-commerce policy, currently being worked on by the Department for Industrial Policy and Promotion (DIPP), be released as soon as possible. The organisation also urged the policy to cover domestic online businesses to maintain a high standard in the industry.

"The FDI norms as spelled out in the policy should also be made applicable on domestic e-commerce players as well to restrict them from adopting any unethical business practices and remain at par with other e-commerce players," said CAIT in a statement as reported by the Press Trust of India.

CAIT also took the opportunity to ask yet again for the government to set up a regulatory body for the e-commerce sector.

CAIT has been very vocal of its stance against heavy FDI in India’s e-commerce industry and continues to protest US-business Walmart’s acquisition of Flipkart, even though it has already been finalised. The organisation has, however, championed the government’s tightening of FDI regulations.

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