FDI in online retail will help in aggressive growth: Amazon 12/09/2014

FDI in online retail will help in aggressive growth: Amazon
12/09/2014 00:30
Global retail giant Amazon said allowing foreign direct investment in eCommerce will help in accelerating further growth in the USD 3 billion Indian online retail market, reported PTI. "We are already very successful but FDI would make possible to spin it more aggressively," said Amit Agarwal, Amazon vice-president and managing director India. Amazon, which operates on a marketplace model in India, is betting big on the country and has announced investment of USD 2 billion to expand its operations here. Foreign Direct Investment (FDI) norms in India do not allow FDI in e-commerce. Most e-tailers like Flipkart and Snapdeal follow the online marketplace model, where they connect sellers and buyers. Amazon, which launched its marketplace in India last year, counts India among its fastest growing markets and has said it is on track to touch USD 1 billion in gross sales. In India, Amazon sells over 17 million products across categories like books, apparel and electronics from a growing base of thousands of small and medium-sized businesses. It also plans to open 5 new centres across India in addition to its two fulfilment centres (FCs) in Mumbai and Bangalore. Apart from foreign players like Amazon, industry bodies like Internet and Mobile Association of India (IAMAI) are also supporting the move, saying it will help e-commerce firms grow Internet usage in the country and provide players access to funds for investing in technology and back-end operations. According to IAMAI, only 25 million of over 231 million Internet users in India transacted online (as of December 2013), taking the Indian e-Commerce market to Rs. 62,697 crore.