The central government has here upon, made its stand clear on FDI’s in the field of e-commerce. Government has stated that Foreign investors can float a e-commerce business in India with 100 percent investment. However it would be applicable only in case where a company would act as mere facilitator between seller and the buyer. Which means, such company is neither allowed to sell goods by itself nor could it hold any inventory.

 

Further, such an e-commerce firm will not be permitted to sell more than 25 per cent of its sales from one particular vendor. The present announcement might certainly woo the foreign investors to take part in the online shopping boom of India. Global players such as Alibaba might certainly sniff a chance to set their feet in the country. While some analysts view this decision as harmful to the national market, some other’s view it as best opportunity to attract investors.