Top retailers met Minister for State for Commerce Nirmala Sitharaman on Thursday in the capital to voice their concerns ahead of the stakeholders' meeting tomorrow to discuss foreign direct investments in the e-commerce sector.
The Retailers Association of India (RAI) that represents over 1,000 large retailers and 1.8 lakh mom-n-pop stores, both online and offline, has repeatedly called for a level-playing field for all retail channels in the context of the existing rules which do not allow 100 percent FDI into their ventures.
Prominent RAI members, including top executives like BS Nagesh from Shoppers Stop, Kishore Biyani and Rakesh Biyani of Future Group, J Suresh from Arvind Group and Rahul Mehta of Clothing Manufacturers Association among others attended the meeting, said a RAI official.
"The minister has asked us to submit clear definitions of retailing, business to business commerce, as well as electronic commerce," RAI chief executive Kumar Rajagopal, who attended the meeting, told PTI.
"We have asked the government to look into predatory pricing and possible violations of FDI rules by e-commerce players due to lack of well-defined rules," he added. Currently, the government allows 100 per cent FDI in wholesale (both online and offline) and only 49 per cent in multi-brand retail.
But there is no clarity on FDI in e-retail sector dominated by online marketplaces like Flipkart, Snapdeal among others. "The retail landscape is going through a change and multi-channel retail is gaining importance, so the government should addresses the sector as a whole and not divide it by channels," Rajagopal explained. In May, RAI had dragged the government to courts over the selective FDI in the sector.
"We had filed a petition with the Delhi High Court, and we were asked to convert it into a representation to the government, which we did," he said.
While the RAI had boycotted the stakeholders meeting held in May, which was attended by e-commerce majors like Flipkart, Snapdeal and Amazon, they will attend the meeting on Friday, Rajagopal said, adding that they will clarify their stance. "We are hopeful of some clear directives soon," he said.
The ministry is also scheduled to meet chief ministers on July 15 to discuss the FDI issue.
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