Flipkart is not in favor of Foreign Direct Investment (FDI) being allowed in internet retail in India. As per the statement issued by Economic Times, a spokeswoman for Flipkart said, “The only e-commerce player that will benefit from such a move is a company which is already operating in India as a marketplace and wants to enter the country through an inventory based model.”
Once Foreign Direct Investment is allowed, the international players (eBay, Amazon) who operate in a marketplace model in India, will be able to start selling their own products to the Indian consumers and thus expand their business in the country.
iamWire take: In october,2013 Flipkart contacted us to clarify their stand on FDI in eCommerce. The mail said that they clearly have Sachin’s stand in favor of ‘allowing’ FDI in eCommerce. Now what can be the potential reasons for having an opposite view. If FDI in eCommerce is allowed, foreign players would be able to sell their own products and competition for Flipkart would increase. Also, cash strapped firms would not go out of business which again means competition for Flipkart would increase.