E-Commerce market grows to $38.5 billion this year


The e-commerce market in India is estimated at $38.5 billion in 2018-19, as per the  Economic Survey 2017-18. The market saw a growth of 17 percent this year and jumped from $33 billion from the previous year to $38.5 billion this year.

E-CommerceThe market saw a growth of 19.1 percent in 2016-17.

As per extant Foreign Direct Investment (FDI) policy, FDI up to 100% is permitted under automatic route in companies engaged in e-commerce provided that such company engaged only in Business to Business (B2B) e-commerce.

Further, 100 percent FDI under automatic route is permitted in marketplace model of e-commerce but FDI is not permitted in inventory based model of e-commerce. Moreover, an entity is permitted to undertake retail trading through e-commerce under the following circumstances, subject to FDI policy provisions:

A manufacturer is permitted to sell its products manufactured in India through e-commerce retail.

A single brand retail trading entity operating through brick and mortar stores is permitted to undertake retail trading through e-commerce.

A food product retail trading entity is allowed to undertake retail trading, including through e-commerce, in respect of food products manufactured and/or produced in India.