New Delhi: Three associations from textiles, MSME and gems and jewelery sector have asked the government to permit foreign direct investment (FDI) in e-retailing.
Textile Association of India, All India MSME Association and Gem and Jewelery Trade Council in a written representation to Commerce and Industry Minister Nirmala Sitharaman have asked to review the policy of opening the business-to-consumer (B2C) ecommerce sector to FDI.
"Opening the B2C model will enable manufacturers to sell directly to ecommerce companies who can then use their own inventory and supply chain to sell it directly to the consumers," Textile Association of India (TAI) said in a statement.
Currently, 100 percent FDI is permitted for B2B ecommerce but it is prohibited in B2C.
Ecommerce is emerging as a strong channel driving consumption and growth in the country, it said adding that the platform has enabled manufacturers to access wider distribution and marketing channels at much lesser prices.
"They are now able to access a wider national and even global market at the click of a button. This will also give the manufacturers access to a reliable and faster supply chain for the delivery of their products," the statement said.
TAI National President Arvind Sinha said that the government should open ecommerce to FDI to enable growth of manufacturing.
"The ecommerce platform has enabled many small jewellery designers and manufacturers to scale quickly; and over the next few years, the online jewellery space is estimated to grow by 60-70 percent annually," Gem and Jewellery Trade Council of India President Shantibhai Patel said.
