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India will not allow foreign companies to operate in multi-brand segment: Piyush Goyal
Jun-20-2019

Amid the problems faced by kirana stores, traders and retailers from foreign competition, Commerce and Industry Minister Piyush Goyal has said the government will not allow foreign companies to operate in multi-brand segment and necessary action will be taken against people indulging in predatory pricing. He added that the pretext of B2B (business-to-business) no entry will be allowed for multi-brand retail.

Goyal also stated that predatory pricing will not be allowed and necessary action will be taken against defaulters. He added that the draft e-commerce policy will be finalised only after taking into account every suggestion received by the Department for Promotion of Industry and Internal Trade (DPIIT). He asked the traders to use government e-marketplace and MUDRA scheme to promote their business.

Besides, Confederation of All India Traders (CAIT) has demanded early formulation of e-commerce policy. It said a regulatory authority should be constituted to regulate and monitor the e-commerce business with adequate powers to penalise or take action against entity which violates the policy. According to FDI policy, India permits foreign direct investment in the multi-brand retail sector with a cap of 51% ownership by overseas players.

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