Ecommerce, Governance

RSS Demands a Ban on Foreign E-Commerce Firms Operating in India


The Rashtriya Swayamsevak Sangh (RSS) is asking the government to put a ban on all foreign e-commerce firms such as Amazon, Flipkart and eBay, because they are killing the domestic players in the Indian market. And they have demanded a ban on Flipkart as it has a high infusion of foreign funds.

Earlier this month, leaders of the Swadeshi Jagran Manch (SJM) met Finance Minister, Arun Jaitley for a discussion on the budget and have sought a white paper on FDI, as they are unhappy with the Foreign Direct Investment (FDI) policies of the NaMo government, as reported by The Indian Express.

Ashwani Mahajan, SJM national convener said, “We are of the opinion that FDI in e-commerce should be prohibited by law. Though we do not allow FDI in e-commerce sites, they circumvent the law to sell their product in the country. Even Indian e-commerce firms like Flipkart have turned to be foreign now with funding from outside. There is a lacuna in the law and this cannot be allowed. We have asked the Finance Minister to plug loopholes in the law.”

Indian Law allows FDI in marketplaces where sellers and buyers are linked directly, and not in inventory based e-commerce sites that sell products to customers directly. At present, the government has no data on the e-commerce industry. “This is more harmful than FDI in retail,” Ashwani Mahajan said.

In August 2014, Indian Commerce Minister, Nirmala Sitharaman had announced that the same rules for FDI, are same for retail and e-retail.

Also Read: NaMo might now open doors to FDI in eCommerce

Further adding Mahajan said, “The government is talking about Make in India, but you are asking for more FDI in different sectors. We want to know what has happened so far. We have asked the government to undertake a study and bring out a white paper.”

Cover Image Source: Chiangraitimes


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