A number of celebrity fashion brands including HRX, All About You and Alia Bhatt for Jabong may have to change their business models due to the new foreign direct investment policy due to take effect on February 1.
Confederation of All India Traders (CAIT) has threatened to launch a nationwide protest if the government gives in to the demands of the e-commerce companies to delay or change the foreign direct investment norms.
As India’s top multi-brand e-commerce platforms face the upcoming FDI norms that could see them having to fully reassess their business models, Amazon India has announced a sale to boost revenue ahead of uncertainty.
The founder of the online eyewear platform Lenskart, Peyush Bansal, has assured that new foreign direct investment norms will not affect his business model but criticised the government for making it hard for start-ups.
Amazon India remains committed to expansion in India and has the highest number of job vacancies in the country compared to any other it operates in. The business also aims to expand beyond e-commerce into other areas.
The Minister of Commerce Suresh Prabhu assured that there is “no confusion” around the new foreign direct investment (FDI) policy and that the government is not trying to tell e-commerce companies how to do business.