In a big push to the country booming e-commerce sector, the government on Tuesday allowed wholesalers to enter single-brand retailing and also hawk their own products directly to customers using online portals. This will likely open up India’s estimated $30-billion organised retail market to global giants such as Amazon to push their proprietary products like Kindle e-reader.
The reforms announced also included allowing a manufacturer to sell products directly through online gateways. Effectively it gives the option to consumer giants such as Samsung, Xiaomi, and others to set up their own online retail networks.
Global retailers have often cited restrictive local policies as roadblocks for expanding operations in India. Companies such as Walmart can now explore the opportunity of becoming single-brand retailers and sell their own labels through both e-commerce and new stores.
Also for the state-of-the-art and cutting-edge technology manufacturers, the government opened a new window by saying that “sourcing norms can be relaxed with government approval.”
Besides, those who already have approval for single-brand retail can now open e-commerce operations.
In the case of duty-free shops, the department of Industrial Policy and Promotion said that “100% FDI is now permitted under automatic route in duty-free shops located and operated in the customs-bonded areas.”
“This is a clear and strong message that reforms are not only on track but are going to be aggressive,” said Chandrajit Banerjee, director-general, CII.