Cabinet Approves 100% FDI in Space Sector, India Now Liberalised for FDI in Prescribed Space Sub-Sectors/Activities

The FDI policy reform will enhance Ease of Doing Business in the country, leading to greater FDI inflows and thereby contributing to growth of investment, income and employment

The Union Cabinet chaired by Prime Minister Shri Narendra Modi approved the amendment in Foreign Direct Investment (FDI) policy on space sector. Now, the satellites sub-sector has been divided into three different activities with defined limits for foreign investment in each such sector.

The Indian Space Policy 2023 was notified as an overarching, composite and dynamic framework to implement the vision for unlocking India’s potential in Space sector through enhanced private participation. The said policy aims to augment space capabilities; develop a flourishing commercial presence in space; use space as a driver of technology development and derived benefits in allied areas; pursue international relations and create an ecosystem for effective implementation of space applications among all stakeholders.

As per the existing FDI policy, FDI is permitted in establishment and operation of Satellites through the Government approval route only. In line with the vision and strategy under the Indian Space Policy 2023, the Union Cabinet has eased the FDI policy on Space sector by prescribing liberalized FDI thresholds for various sub-sectors/activities.

Department of Space consulted with internal stakeholders like IN-SPACe, ISRO and NSIL as well as several industrial stakeholders. NGEs have developed capabilities and expertise in the areas of satellites and launch vehicles. With increased investment, they would be able to achieve sophistication of products, global scale of operations and enhanced share of global space economy.

The proposed reforms seek to liberalize the FDI policy provisions in space sector by prescribing liberalized entry route and providing clarity for FDI in Satellites, Launch Vehicles and associated systems or subsystems, Creation of Spaceports for launching and receiving Spacecraft and manufacturing of space related components and systems.

Benefits:

Under the amended FDI policy, 100% FDI is allowed in space sector. The liberalized entry routes under the amended policy are aimed to attract potential investors to invest in Indian companies in space.

The entry route for the various activities under the amended policy are as follows:

• Upto 74% under Automatic route: Satellites-Manufacturing & Operation, Satellite Data Products and Ground Segment & User Segment. Beyond 74% these activities are under government route.
• Upto 49% under Automatic route: Launch Vehicles and associated systems or subsystems, Creation of Spaceports for launching and receiving Spacecraft. Beyond 49% these activities are under government route.
• Upto 100% under Automatic route: Manufacturing of components and systems/ sub-systems for satellites, ground segment and user segment.

This increased private sector participation would help to generate employment, enable modern technology absorption and make the sector self-reliant. It is expected to integrate Indian companies into global value chains. With this, companies will be able to set up their manufacturing facilities within the country duly encouraging 'Make In India (MII)' and 'Atmanirbhar Bharat' initiatives of the Government.

India Witnessed US$38 Billion Inflow of FDI: NITI Aayog CEO Amitabh Kant

While the world reeled under the Covid pandemic, India witnessed 38 billion U.S. dollars inflow of FDI: NITI Aayog CEO Amitabh Kant 

The Pandemic will end soon: Gurudev Sri Sri Ravi Shankar

Self-awareness is a very important trait for entrepreneurship: Yashish Dahiya

To administer vaccines to 1.3 bn people, we need 2.6 bn syringes and needles. We are worried about how much pollution they produce: Dr. Krishna Ella

 

Hyderabad, December 09, 2020….Post the opening of TiE Global Summit, much concurrent session held. In a session titled 'Transformation of India with a focus on entrepreneur ecosystem' in conversation with CNBC TV18's Nisha Poddar, NITI Aayog CEO Amitabh Kant said that India has grown as a technology country. India has world's second-largest start-up ecosystem, he said. While the world reeled under the Covid pandemic, India witnessed 38 billion U.S. dollars inflow of FDI.

He spoke about various fronts on which the Government is working to leverage technology for the benefit of India's 1.3 billion populations. The solutions will not only benefit 1.3 billion but the next 4-5 billion people who will move over from poverty to middle class, he said.

He said that Niti Aayog has taken up various measures to attract FDI and has pushed limits in innovation. India is becoming an innovation-driven economy by removing regulatory barriers. He propounded various measures such as Aadhaar, DBT, UPI, Aayushman Bharat, etc. He said that India can build a number of tech products as it has skilled manpower and unique problems. The Post Covid-19 era will be a world of technology, he said. India can be a tech garage for the world, he added. India has worked on a range of products solving problems, he said.

Speaking on data culture, data economy and A.I. competence, Mr. Amitabh Kant said that it is an evolving and fast-changing digital landscape. Though data privacy has been in the limelight, India needs data protection and data empowerment too, he said.

Using data history is very critical to us. A framework to share data easily and reliably with control is needed. We can use data for machine learning, artificial learning, data empowerment and responsible artificial intelligence. Personal Data Protection Bill is under scrutiny by the Parliament, he informed.

India is data-rich but it has to be data-intelligent, find solutions to problems, Mr. Amitabh Kant said. Artificial Intelligence can help add up to $957 billion to the Indian economy by 2035. The opportunity for AI in India is massive, he said. The focus should be on finding A.I. solutions and adopt them at scale. We should use A.I. for social good, he opined. Development and deployment of A.I. are mode critical, he added.

Answering a question on women entrepreneurship, Amitabh Kant said that the next big disruption in India will be led by women entrepreneurs. To transform India, we need to give a huge fillip to women entrepreneurship, he said. Speaking on the Startup ecosystem on India, Amitabh Kant called upon Indian companies and Indian family businesses to invest in the ecosystem. India should learn to support startups, he said.

WEALTH CREATOR DNA

Wealth Creator DNA session hosted by Sridhar Pinnapureddy, President, TiE Hyderabad with entrepreneurs Ritesh Agarwal (CEO, OYO), Sumant Sinha (Chairman and Managing Director of ReNew Power) and Yashish Dahiya (Group CEO, PolicyBazaar) threw up interesting stories of their journey and growth on becoming an entrepreneur.

The premise of the session in a Q&A format was on what makes these entrepreneurs special and where they born to create wealth? The session revealed the thought process behind their success and what it takes to become what they are.

Sharing his thoughts, Sumant Sinha said that question oneself and introspection play a vital role. He said that he saw himself as a builder/creator who wants to create something that has a lasting value. Ritesh Agarwal too opined that ability to reflect is critical. The most important thing was that he aspired to create value out of nothing. Yashish Dahiya said that self-awareness is a very important trait for entrepreneurship.

They shared the start of their journey to entrepreneurship and their biggest moments.

Sumant Singh disclosing his experiences said that he comes from a family were doing the job in the private sector a very daring thing to do. He opined that comfortable life, job, etc. are straight-jackets. It becomes difficult to start something. I first thought of becoming an entrepreneur sometime in my mid-30s, he said.

Answering a question on who their favorite wealth creators (with whom they are fascinated) were Sumant Sinha said that he admired Elon Musk and said that he was ahead of humanity and was a visionary and a problem solver. Ritesh Agarwal said that Bill Gates and Azim Premji were his role models as they not only created wealth but also gave back to society. Yashish Dahiya said that he is fascinated by Sanjeev Bikhchandani, his first investor for his guts. It takes a lot of guts to invest into an idea, he said.

Delivering the Vaccine: The Big Opportunity

Dr Krishna Ella, Chairman & MD, Bharat Biotech was in conversation with Kiran Mazumdar Shaw Chairperson, Biocon, on delivering the vaccine: the big opportunity. Speaking to Kiran, Dr. Krishna Ella said India is one of the best Vaccine Industries in the world. One in every three children is vaccinated by Indian Vaccine Industry. In the past, R & D was not so much as it is in the Vaccine industry. Thanks to Pandemic, the industry got good recognition. India has the experience of polio immunization. But the number there is small just 125 million. Now in case of the Corona, it is 7bn adults, which is a huge challenge.

Replying about their plans, he said intranasal COVID-19 vaccine to enter phase 1 trials next month. We are setting up two more facilities for vaccine manufacturing including Covaxin, a vaccine for the coronavirus, that is when we will know our installed capacity well.

It is going to be a single-dose vaccine. The clinical trial process is also going to be faster," he said to Kiran Mazumdar-Shaw, Chairperson of Bengaluru-based Biocon Limited with whom he was in conversation.

We have tied up with Washington University School of Medicine in St.Louis for a novel "chimp-adenovirus" (Chimpanzee adenovirus), single-dose intranasal vaccine for COVID-19.

On the pricing he said Indian vaccines will be much cheaper when compared to other countries.

So many manufacturers are working on at a faster pace with limited data and safety, efficacy, no information on long term efficacy, how does he address these concerns? We as manufacturers safety is our priority. Safety is the most important in the pandemic. Among different platforms based on which vaccines are manufactured, we are working on inactivated vaccines, informed Krishna Ella.

Speaking on the deployment Mr. Krishna Ella shared with Kiran Mazumdar Shaw, Chairperson Biocon Ltd, that we need to vaccinate 1.3 billion people and they need to be vaccinated twice. So we need 2.6 bn syringes and needles. And we are worried about the pollution these devices generate.

The double doses of vaccine with a gap of one month in between may add more complexity to the distribution, he observed. Besides that, he says, it is the largest ever vaccination program in the history of entire mankind.

Another huge challenge will be the availability of medical devices such as auto disposable syringes, needles required for the delivery of the vaccine. While demand is more, the supply is not in commensuration with the demand as companies have been working with far fewer resources.

The Art of Living as Entrepreneurs

In another session, Sridhar Reddy, Chairman, Ctrls&Cloud4c was in conversation with Gurudev Sri Sri Ravi Shankar. Attendees from all over the world from Korea, Singapore, the USA and others asked questions on a wide range of subjects relevant entrepreneurship.

Replying to those questions, Gurudev Sri Sri Ravi Shankar said, the pandemic is going to end very soon says Gurudev Sri Ravi Shankar while interacting at the TiE Global Summit on the of its inauguration.

Replying to a question from a business owner from Singapore on how business owners have to manage the tough times the whole world is going through currently, he said it is a passing phase and it will end very soon. This too will pass. Take for example how some countries who lost everything in the past two world wars and were reduced to rubbles and woke up from ashes, rebuilt everything. This is also something similar to that. Take this as an opportunity.

To construct a tall building you go so deep and down only to put up a massive structure. There is enough humanity, human values to support each other. Hold on the ground. This pandemic is going to end very soon, Gurudev Sri Sri Ravishankar said.

Speaking about entrepreneurship he said, the name entrepreneur indicates that you are here to bring something new to the world. And if you fail to do so, you are no good he said.

Talking on failures in the entrepreneurial journey he said, take failures as challenges. To do that you need a lot of inner strength. If you are stressed out, you can't handle small problems or challenges. Train your mind to accept challenges, failures. Stand up for criticism. And always be ready to accept criticism. Don't shun it, Gurudev Sri Sri Ravishankar said. 

FDI India Successfully Enabled Over 150 Indian Businesses Gain Access to Soft Loans by Foreign Investors

FDI India, a one-of-its-kind startup has been at the forefront in providing consultancy to over 150 Indian businesses to accelerate business growth. Through its interactive platform, FDI India enabled financial strength to these businesses through an array of services including Financial Planning & assistance, connecting them to the right foreign investors, obtaining government permissions, and project planning.

FDI India

The company facilitated soft loans from foreign investors from across 15 countries through the most credible route. Dedicatedly serving 27+ sectors including Manufacturing, Pharmaceuticals, Solar and Hydro Plants, Construction, Hospitality, Education, Mining and Metal, Food Processing Sectors, etc, the company enabled thriving Indian businesses to obtain soft loans with a minimum ticket size of INR 25 Cr. at 3.25% per annum on reducing balance. This involved a detailed process right from the screening of the loan applicants to helping them build their portfolios and effectively present credentials to potential investors and guiding them in their financial and project plans. 

Commenting on the same, Mr. Vishal Yadav, CEO & Founder, FDI India, says, "Being the world's sixth-largest consumer market, India is an attractive investment destination for foreign investors. However, the pandemic and the resultant economic slowdown has posed multiple challenges for businesses of all size and scale. With the view to combating the same, FDI India aims to bridge the market gap allowing enterprises to boost their business by providing the most credible investment route enabling the market towards economic growth."

Some of the major challenges Indian businesses are witnessing in the course of their business lifecycle include assistance in managing their fund accounts, gaining access to foreign credit, etc. FDI India with a strong track record has helped address this with its cornerstone technology platform reaching across demographics and geographies to provide convenient, low-cost, and process-driven Foreign Direct Investment. The company is backed by 50+ passionate and committed professionals with comprehensive experience to deliver expertise in fund projects.

About FDI India

FDI India is a one-of-its-kind startup that provides consultancy to Indian businesses to accelerate business growth by obtaining soft loans from foreign investors through the most credible route. Aiming to transform the country's investment climate by simplifying the business environment for investors, FDI India enables financial strength to its clients through quality and conflict-free Foreign Investments with their range of services including financial planning & assistance, connecting to right investors, Government permissions, and Project planning. This involves a rigorous process right from the screening of the loan applicants to helping them build their portfolios and effectively present credentials to potential investors in guiding them in their financial and project plans.

In lieu of combating the current economic slowdown, FDI India is driven to strengthen the financial capability of its clients, through handholding them in the investment lifecycle right from pre-investment to after-care which includes a background check of applicants, Drafting a proposal for an Investor pitch, consulting them throughout their investment life-cycle, etc. FDI India holds a strong reputation for providing exceptional consulting services to Indian businesses and connecting them to the right foreign investors from across 15 countries including Singapore, Malaysia, Australia, the United Kingdom, the United States, Germany, Italy, Canada, and Ireland among others.

Govt considering Relaxing FDI norms in Digital Media and Single Brand

New Delhi, Aug 26 (PTI) The government will soon consider relaxing foreign direct investment (FDI) norms in several sectors, including single-brand retail trading and digital media, to attract overseas players, sources said.

Other sectors where FDI rules would be eased are coal and contract manufacturing. According to sources, the Union Cabinet would soon consider these issues for approval. The government may allow 100% FDI in contract manufacturing, according to the proposal.

In the existing foreign investment policy, 100 per cent foreign direct investment is permitted in the manufacturing sector under the automatic route. A manufacturer is also allowed to sell products manufactured in India through wholesale and retail channels, including through e-commerce, without the government's approval.

But the policy does not talk about the contract manufacturing and it is not clearly defined in the policy. "Big technology firms across the world are going for this, so there is a need for clarification on the matter," they said.

Similarly, the government is looking at coming out with a clarification on applicability of the foreign direct investment policy on the digital media sector.

The present FDI policy is silent on the fast-growing digital media segment.

In the print media sector, 26% FDI is allowed through government approval route. Similarly, 49% FDI is permitted in broadcasting content services through government approval route.

In the single-brand retail sector, the cabinet will consider a proposal of relaxing rules for complying with the mandatory 30 per cent local sourcing norms by foreign single-brand retailers.

As per the proposal, single-brand retail firms would also be permitted to open online stores before setting up brick-and-mortar shops. Currently, online sale by a single-brand retail player is allowed only after the opening of physical outlets.

Relaxations are expected in a provision where foreign retail traders are presently allowed to adjust procurement of goods from India for their global operations for meeting the mandatory local sourcing requirement.

However, "incremental" sourcing of goods from India is only taken into account presently, and it will be allowed only for five years.

"Amendments and easing are also likely in this provision," a source said.

The move comes in the backdrop of announcements made by the government in the Budget. Finance Minister Nirmala Sitharaman in her Budget speech in July had stated that the government would examine suggestions of further opening up of FDI in aviation, media (animation, AVGC) and insurance sectors in consultation with all stakeholders to attract more overseas investment.

FDI in India dipped 1% to USD 44.36 billion in 2018-19.

Last year, the government had relaxed FDI rules for several sectors, including single-brand retail, non-banking financial companies and construction.

Foreign investments are considered crucial for India, which needs billions of dollars for overhauling its infrastructure sector such as ports, airports and highways to boost growth.

FDI helps in improving the country's balance of payments situation and strengthen the rupee value against other global currencies, especially the US dollar. PTI RR

Govt to Clarify on Applicability of FDI Policy on Digital Media: Sources

The government is likely to come out with a clarification on applicability of the foreign direct investment policy on the digital media sector, official sources said. The present FDI policy is silent on the fast-growing digital media segment.

In the print media sector, 26% FDI is allowed through government approval route. Similarly, 49 per cent FDI is permitted in broadcasting content services through government approval route. But 100% is allowed for up-linking of non-news and current affairs' TV channels, and down-linking of TV channels through automatic approval route.

"In the FDI policy, digital media does not find a place. As the sector is growing fast, we are looking at it will come under FDI cap or not," a source said. The proposal is worked out by the commerce and industry ministry, sources said.

On in the proposal, Deloitte Partner Jehil Thakkar said that this is a great move by the government as it would help media companies to raise additional capital for their digital media segment.

"The government should clarify about the FDI cap in the sector and whether that FDI will be coming through automatic route or not, he said.

Thakkar added that at present a significant part of the growth in the media sector is coming from the digital area. "Additional capital is needed to keep this growth going and FDI would be the most welcoming thing in this."

Finance Minister Nirmala Sitharaman in her Budget speech in July had stated that the government would examine suggestions of further opening up of FDI in aviation, media (animation, AVGC) and insurance sectors in consultation with all stakeholders with a view to attracting more overseas investment.

FDI in India dipped 1 per cent to USD 44.36 billion in 2018-19.

Last year, the government had relaxed FDI rules for several sectors, including single-brand retail, non-banking financial companies and construction.

Foreign investments are considered crucial for India, which needs billions of dollars for overhauling its infrastructure sector such as ports, airports and highways to boost growth.

FDI helps in improving the country's balance of payments situation and strengthen the rupee value against other global currencies, especially the US dollar. PTI RR CS

In a Boost to Co.s like Apple, Govt may Permit 100% FDI in Contract Manufacturing: Sources

The government is working on a proposal to allow 100% FDI in contract manufacturing with a view to attract overseas investments, said a PTI release citing sources. Contract Manufacturing or Private Label Manufacturing refer to Production of goods by one company, under the label or brand of another.

According to the existing foreign investment policy, 100% foreign direct investment (FDI) is permitted in the manufacturing sector under the automatic route. A manufacturer is also allowed to sell products manufactured in India through wholesale and retail channels, including through e-commerce, without government's approval.

"The current policy does not talk about contract manufacturing and it is not clearly defined in the policy. Big technology companies across the world are going for this, so there is a need for a clarification on the matter which government is considering positively," they said.

The commerce and industry ministry is working on a proposal that would be finalized soon and sent for Union Cabinet's approval.

Commenting on the proposal, Rajat Wahi, Partner, Deloitte India, said the move if approved by the government will give a boost to the manufacturing sector.

"It is a welcome proposal for technology based companies like Apple," he said. Finance Minister Nirmala Sitharaman in her Budget speech in July had proposed relaxation in the FDI norms for certain sectors such as aviation, AVGC (animation, visual effects, gaming and comics), insurance, and single brand retail with a view to attract more overseas investment.

FDI in India dipped 1% to USD 44.36 billion in 2018-19. Last year, the government had relaxed FDI rules for several sectors, including single brand retail, non- banking financial companies and construction.

Foreign investments are considered crucial for India, which needs billions of dollars for overhauling its infrastructure sector such as ports, airports and highways to boost growth.

FDI helps in improving the country's balance of payments situation and strengthen the rupee value against other global currencies, especially the US dollar. PTI RR MKJ

India Constitutes Committee to Examine FDI Issues in E-Commerce

A committee has been constituted under the Department for Promotion of Industry and Internal Trade to examine issues related to FDI in the e-commerce sector, Parliament was informed on Wednesday.

The committee was constituted on July 12 under an additional secretary level officer from the Department for Promotion of Industry and Internal Trade (DPIIT) with members from the departments of commerce, consumer affairs, legal affairs and MSME.

They will examine issues related to FDI (foreign direct investment) in the e-commerce sector and give suggestions, Commerce and Industry Minister Piyush Goyal said in a written reply in the Lok Sabha.

"A committee has been constituted on 12th July, 2019 under Additional Secretary, DPIIT...to examine issues related to FDI in e-commerce and give its suggestions," he said.

According to the current policy, 100 per cent FDI is allowed in the marketplace format of e-commerce retailing. However, FDI is prohibited in the inventory-based model.

In a separate reply, the minister said from 2006 till March 29, 2018, 112 brands have obtained approval of the government for single-brand retail trading activities.

FDI policy on single-brand retail trade has been in operation since 2006. FDI up to 100 per cent under automatic route has been allowed in the sector subject to certain conditions. PTI RR

Govt to Examine Opening up FDI in Media, Animation, Visual effects, Gaming and Comics Industry

In the Union Budget 2019 announcement, Finance Minister Nirmala Sitharaman said in her speech that the Foreign Direct Investment (FDI) norms in the media and AVGC (Animation, Visual effects, Gaming and Comics) industry will be relaxed in consultation with the industry.

The minister said, "I propose to further consolidate, the gains in order to make India more attractive FDI destination. The government will examine suggestions of further opening up of FDI in aviation, media, AVGC (Animation, Visual effects, Gaming and Comics) and insurance sector in consultation with stakeholders," she said.

Speaking on this, Paavan Nanda, Co-Founder of an E-sports gaming platform WinZO Games, said "With its focus on job creation, start-ups, MSMEs, infrastructure, digital India and ease of business, Finance Minister Nirmala Sitharaman has presented a visionary Union Budget. The government’s proposal to relax FDI norms for the AVGC (Animation, Visual effects, Gaming and Comics) industry is a conscious move to attract additional foreign investment in the sector, which will lead to overall growth and sustenance."

"The gaming industry is transforming rapidly, fueled by enhanced connectivity, changing modes of social interaction and a growing youth population. The steps proposed by the government will help companies re-look at their strategy and tap the immense potential of the industry. This will also expedite the growth & confidence in the overall sector," he said.

Currently, 26% FDI is permitted with government approval in publishing of newspaper and periodicals dealing with news and current affairs; and publication of Indian editions of foreign magazines in news and current affairs.

The Finance Minister also announced that local sourcing norms for single brand retail sector will be eased.

Sitharaman said that India’s FDI inflows in 2018-19 grew by 6 per cent to USD 64.37 billion.

Auto Spare Parts Online Marketplace Boodmo.com Raises ₹8 crores in Fresh Capital

Boosting its efforts to capture the growing online auto spare parts market in India, Gurugram-based auto spare parts online marketplace boodmo.com has raised INR 8 Crores in fresh funding from an undisclosed investor. With the latest funding, the enterprise has so far raised INR 35 Crores through FDI.

In 2017, boodmo raised INR 10 Crores in its first investment round, followed by an additional INR 5 Crores in the same year. The company raised INR 5 Crores in July 2018 and an additional INR 7 Crores in December 2018.

Launched in 2015 by two Ukrainian entrepreneurs – Yevgen Sokolnikov and Oleksandr Danylenko - boodmo.com is India’s fastest growing online auto spare parts marketplace. The enterprise aims to lead the innovation in the online auto component industry by organizing the market and making it more dynamic and transparent for all the stakeholders. With over 1 million varieties of spare parts by 400 suppliers of over 3,000 Indian as well as international brands available on its e-store, the organization has a massive e-repository of genuine OEM and aftermarket spare parts.

Talking about the freshly infused capital, Mr Oleksandr Danylenko, Managing Director & Co-Founder, boodmo.com, said, “With the Indian auto components industry poised to become the 3rd largest in the world by 2025, we are looking to strengthen our position in the Indian online auto spare parts market by launching new Sorting Hubs, boosting technology infrastructure and hiring appropriately skilled manpower. This new funding will help us expand our presence in the country and smoothen our operations, which would in turn help us make swift product delivery to the customers.”

He further added, “We already have Sorting Hubs in Delhi and Jaipur. This additional funding will help us streamline the operations for our new Sorting Hub that will be opened in Bengaluru in the next two weeks. We also plan to open a Sorting Hub in Maharashtra in the last quarter of 2019. While the online spare parts industry in India is highly fragmented and suffers from lack of customer trust, our Sorting Hubs are a step towards ensuring that only good quality products are delivered to the customers. Our innovative approach to ensure the quality of the products by following stringent quality checks at our Sorting Hubs will not only ensure reliability but also offer a robust distribution network.”

A unit of Smart Parts Online Private Limited, boodmo.com has introduced a first-of-its-kind ‘Spare Parts Catalogue’ on its website. This catalogue is a vast database with a comprehensive list of spare parts that enables buyers as well as sellers to identify the exact parts and their corresponding part number by surfing through the vehicle’s manufacturer, make and year of manufacturing. This helps them in short listing the exact product that would fit their vehicle. Developed and maintained by boodmo, this database has been made available to other online spare part marketplaces as well for everyone to use and benefit.

Currently, boodmo.com is receiving 600-700 orders every day with 10 lakh unique portal visitors per month. So far, it has served 40,000 customers and more than 40% of them returned for second purchase. The enterprise is actively looking to set up more Sorting Hubs in Tier 1 and Tier 2 cities in order to become the number one online destination for auto spare parts in India.

It may also be recalled that in March, an another automobile parts start-up, SparesHub, had raised INR 3.5 crore from Indian Angel Network, Asia’s largest network of Angel investors.

E-Marketplace for Auto Spare Parts ‘Boodmo.com’ Raises ₹ 7 Cr in FDI

Gurgaon-headquartered boodmo.com, an online marketplace for automotive spare parts, has raised its share capital for the third time this year. The enterprise has received a fresh funding of INR 7 Crores from an undisclosed source. Till date, boodmo has received a total funding of INR 27 Crore.

Earlier in August this year, the startup had raised ₹ 5 Crores worth of investment through FDI from an undisclosed investor.

Founded in 2015 by Ukrainian entrepreneurs Yevgen Sokolnikov and Oleksandr Danylenko, Boodmo is a unit of Smart Parts Online Private Limited. It has a comprehensive database of genuine and aftermarket replacement parts. In a short span of time, boodmo has collated a massive e-repository of genuine OEM and aftermarket car spare parts, offering over 1 million varieties of spares offered by 400 suppliers of over 3,000 Indian as well as international brands.

The boodmo.com website currently offers over 1 million varieties of car spare parts by 400 suppliers of over 3,000 Indian as well as international brands. The organization’s mission is to organize and standardize the Indian automobile spare parts market and make it more dynamic and transparent for all the stakeholders.

Talking about this fresh influx of funds, boodmo’s Managing Director & Co-Founder Mr Oleksandr Danylenko said, “Due to the positive customer response and increasing demand for products available on our e-commerce platform, we launched two Sorting Hubs in Delhi and Jaipur some time back. With this fresh funding, we plan to improve the warehouse management systems with the aim of handling more Inventory at the Hubs on a monthly basis and expediting the product delivery process. This will in turn help us improve our overall performance.”

With the Indian auto component industry expected to become the third largest in the world by 2025, boodmo aims to ensure that the online auto component market plays a vital role in that surge. Regarding the growth that the Indian online auto spare parts industry is witnessing, he said, “The physical auto spare parts industry in India is quite unorganized, with customers often facing issues like unavailability of parts, price disparity, lack of guarantee, etc. The advent of auto spare part ecommerce has given people an opportunity to get their requirements delivered in a competent and quick manner to their doorstep from an authentic supplier. Therefore, this industry is slowly gaining momentum and I expect to see more and more Indians opting for websites like boodmo for their car spare parts requirements in the near future.”

A unit of Smart Parts Online Private Limited, boodmo.com aims to become a trusted channel that would connect car owners with auto spare parts dealers. Customers can find the required automotive components using the online catalogue available on the website and can make their search through VIN, brand or part number.

Amazon, Flipkart, Snapdeal Violate FDI rules, Alleges Traders Body

The Indian ecommerce industry is in some serious soup. India’s traders body, the Confederation of All India Traders (CAIT) has decided to call out the ecommerce industry for the rules that its players are flouting in the disguise of sales and has urged the government to look into the matter.

CAIT has reportedly written to Union Commerce Minister Suresh Prabhu urging the minister to take serious action against ecommerce biggies like Amazon, Flipkart and Snapdeal etc. for disregarding FDI (foreign direct investment) norms listed for such players by engaging in retail trading activities. In the official complaint, CAIT has claimed that the ecommerce companies are indulging in a "blatant violation" of the FDI (foreign direct investment) policy.

CAIT alleges that Amazon’s Great Indian Festival Sale from 21 September to 24 September, 2017, Flipkart’s Big Billion Day Sale from 20-24 September 2017, Snapdeal’s Unbox Diwali Sale from 20 to 25 September 2017, Jabong’s Sale from 20 to 24 September 2017, Myntra’s Sale from 20 to 24 September 2017, and Shopclues’ Maha Bharat Diwali Sale from 20 to 28 September 2017 are all in violation of the guidelines issued by the DIPP.

In its complaint, the traders body divulges that the advertisements being carried out by these ecommerce companies for the last couple of weeks is an attempt of soliciting retail customers to their ecommerce platforms by influencing prices and creating an uneven level playing field in the industry.

Under the country’s FDI policy, ecommerce companies aren’t legally allowed to carry out retail trading activities, but ecommerce portals like Amazon, Flipkart, Snapdeal etc. have become such habitual offenders of the government policies that they’re circumventing the law by engaging in B2C (business-to- commerce) activities which is prohibited for ecommerce marketplace portals.

FDI policy guidelines dictate that ecommerce portals which have opened their channels for FDI can only indulge in business activities for B2B (business-to-business) business, meaning they have to stay away from undertaking any B2C (business- to-consumer) business activities. However, majority of the ecommerce players of the country have failed to adhere to this rule.

According to allegation levied by CAIT Secretary General Praveen Khandelwal, by inserting big advertisements in the mass media, these companies are addressing the consumers directly, something which is in strong contravention of the FDI guidelines.

He said, “They (e-commerce firms named) do not have ownership of the inventory of the products purported to be sold on their technology platform, how can they offer discounts or discounted prices on the products for which they are not the owners-questioned trade leaders.”

The latest development in the case is, that CAIT has charged Indian ecommerce players like Amazon, Flipkart and Snapdeal etc for violation of FDI policy for e-commerce of the Government issued on 29 March, 2016 by Department of Industrial Promotion & Policy, Ministry of Commerce.

Keep watching this space to know what action the government decided to take on the matter.

This development was first reported in India Today.

[Image: YourStory]

US, Singapore, Hong Kong, Japan Are Most Active Investors in Indian Tech Startups

Indian startup industry has established a reputation of its own in the world. The third largest startup ecosystem in the world has had an eventful journey so far and has constantly climbed the popularity charts among investors worldwide.

According to a recent CB Insights report, investors from the United States, Singapore, Hong Kong, Japan and UK have had an encouraging confidence in the Indian tech Startup Ecosystem and have been some of the most active foreign participants in India’s startup deals over the past five years. Among these, US-based investors have been the most active participants.

The report also mentioned that with over 800 equity deals being made over the five years period, the US-based investors have also emerged as the second most active grouping since the year 2012, after India or Mauritius-based investors.

While US-based investors occupy the numero uno position on the list of most active foreign investors, Singapore with five per cent of the deals, Hong Kong with three per cent, Japan with two per cent and UK with one per cent take up second, third, fourth and fifth position respectively.

The CB Insights report also revealed that not only have US-based investors invested their money in Indian Startup Ecosystem, they have invested money in some of the most popular startups in the Indian subcontinent. For example, Tiger Global has backed in numerable Indian startup superstars, such as Flipkart, Ola, and ShopClues. Another major foreign investor in the Indian startup land, is Japan-based Softbank which recently pumped in a whopper USD 1.4 billion investment in Indian e-wallet major Paytm.

Another major head turned in the Indian Investor space, is Hong Kong-based Saif Partners, which has successfully closed a large number of deals as well since the past five years. The firm has backed popular Indian startups such as Paytm and Urban Ladder

“Excluding India and Mauritius, deal participation is heavily tilted toward investors from the United States, which has seen 800 disclosed equity deals to Indian startups since 2012 — more than four times the number of deals by investors from Singapore,” read the report.

It is interesting to note that India and Mauritius-based investors make up for a whopping 61 per cent of the startup deals taking place in the South Asian country. Foreign investors have shown major confidence in the ecosystem and invested large amounts of cash. US-based Accel Partners has made its largest investment in Indian ecommerce titan Flipkart through the overseas unit rather than its Indian unit.

Foreign investments are now expected to get a major push because of the recently released government order allowing convertible notes as a fundraising option for startups from foreign individuals into early-stage firms. Last week, India’s Commerce Ministry in its consolidated FDI policy document, for the first time included startups, which can raise up to 100 per cent of funds from Foreign Venture Capital Investor (FVCI).

US, Singapore, Hong Kong, Japan Are Most Active Investors in Indian Tech Startups

Indian startup industry has established a reputation of its own in the world. The third largest startup ecosystem in the world has had an eventful journey so far and has constantly climbed the popularity charts among investors worldwide.

According to a recent CB Insights report, investors from the United States, Singapore, Hong Kong, Japan and UK have had an encouraging confidence in the Indian tech Startup Ecosystem and have been some of the most active foreign participants in India’s startup deals over the past five years. Among these, US-based investors have been the most active participants.

The report also mentioned that with over 800 equity deals being made over the five years period, the US-based investors have also emerged as the second most active grouping since the year 2012, after India or Mauritius-based investors.

While US-based investors occupy the numero uno position on the list of most active foreign investors, Singapore with five per cent of the deals, Hong Kong with three per cent, Japan with two per cent and UK with one per cent take up second, third, fourth and fifth position respectively.

The CB Insights report also revealed that not only have US-based investors invested their money in Indian Startup Ecosystem, they have invested money in some of the most popular startups in the Indian subcontinent. For example, Tiger Global has backed in numerable Indian startup superstars, such as Flipkart, Ola, and ShopClues. Another major foreign investor in the Indian startup land, is Japan-based Softbank which recently pumped in a whopper USD 1.4 billion investment in Indian e-wallet major Paytm.

Another major head turned in the Indian Investor space, is Hong Kong-based Saif Partners, which has successfully closed a large number of deals as well since the past five years. The firm has backed popular Indian startups such as Paytm and Urban Ladder

“Excluding India and Mauritius, deal participation is heavily tilted toward investors from the United States, which has seen 800 disclosed equity deals to Indian startups since 2012 — more than four times the number of deals by investors from Singapore,” read the report.

It is interesting to note that India and Mauritius-based investors make up for a whopping 61 per cent of the startup deals taking place in the South Asian country. Foreign investors have shown major confidence in the ecosystem and invested large amounts of cash. US-based Accel Partners has made its largest investment in Indian ecommerce titan Flipkart through the overseas unit rather than its Indian unit.

Foreign investments are now expected to get a major push because of the recently released government order allowing convertible notes as a fundraising option for startups from foreign individuals into early-stage firms. Last week, India’s Commerce Ministry in its consolidated FDI policy document, for the first time included startups, which can raise up to 100 per cent of funds from Foreign Venture Capital Investor (FVCI).

Indian Startups Can Now Get 100% of Funds From Foreign VC Investor As Govt Includes Startups in FDI Policy

India's Commerce Ministry in its consolidated FDI policy document released today has, for the first time included startups, which can raise up to 100 per cent of funds from Foreign Venture Capital Investor (FVCI), reports TOI today.

Hereafter, startups in India can now issue equity or equity linked instruments or debt instruments to FVCI against receipt of foreign remittance, said the document which incorporates all the changes made in FDI policy over the past year.

"In addition, startups can issue convertible notes to person resident outside India (subject to certain conditions)," it said.

A person resident outside India (other than citizens/ entities of Pakistan and Bangladesh) will be permitted to purchase convertible notes issued by an Indian startup company for an amount of Rs 25 lakh or more in a single tranche.

NRIs can also acquire convertible notes on non- repatriation basis , said the document of Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce.

"A startup company engaged in a sector where foreign investment requires Government approval may issue convertible notes to a non-resident only with approval of the Government," it said, adding that the startup issuing convertible notes would be required to furnish reports as prescribed by the RBI.

The government is focusing on startup companies to promote job creation and innovation.

The DIPP, which deals with FDI related matters, compiles all policies related to foreign investment regime into a single document to make it simple and easy for investors to understand.

Investors would otherwise have to go through various press notes issued by the department, and the RBI regulations to understand the policy. The government updates the policy every year.

The whole exercise is aimed at providing an investor friendly climate to foreign players and, in turn, attract more FDI to boost economic growth and create jobs.

During the last one year, the government has liberalised FDI policy in over a dozen sectors, including defence, civil aviation, construction and development, private security agencies and news broadcasting. In February, it was reported that government is considering 100% FDI in e-commerce marketplaces in India, however after six months the decision is still pending though after this new FDI policy announcement e-commerce startups in India are now allowed to raise 100% FVCI.

Foreign investments are considered crucial for India, which needs around USD 1 trillion for overhauling its infrastructure sector such as ports, airports and highways to boost growth.

Foreign investments will help improve the country’s balance of payments situation and strengthen the rupee value against other global currencies, especially the US dollar.

Government’s Ecommerce FDI policy is Still Not Liberal and Here's Why

The Narendra Modi government since assuming office in May, 2014 has talked about focusing on reviving the Indian economy by launching various schemes like Digital India, Make in India and Startup India etc. But, the one thing that the government is currently struggling with is the formation of policies to fully support the execution of their these schemes.

Holding testimonial to this fact is the recent clarification issued by the government regarding permissible foreign direct investment (FDI) in ecommerce. Many industrial experts are also branding this move by the government as a win of protectionism over liberalisation. According to them, these reforms though on the face look like an effort to boost the bewildering economy and put power in the hands of the consumer but they're instead a significant of capture by a strong lobby, especially, offline retail.

The Indian government needs to realise that their very own pet projects like Startup India etc. will also have to bear the brunt of these unnecessary policy restrictions that they're imposing and their spineless surrender to lobby groups. The one solution that the government can actually take is to open the gateway to all organised retail, whether offline or online, to 100 per cent Foreign Direct Investment (FDI).

The marketplace model is for sure one of the best ways to do ecommerce that man has been able to invent till now. It serves the producers and the consumers well. What's fascinating is the fact, that even the age old brick-and-mortar organised retail in the country also subscribes to the marketplace model in order to save its money on holding inventory.

Currently, the government has asked the following three restrictions to be adhered on the marketplace platform:

1) They're not allowed to offer discounts.
2) A particular vendor’s share of trade volume on the marketplace cannot exceed above 25 percent.
3) The seller will be wholly responsible for the post-sales delivery and customer satisfaction.

The first restriction placed by the government is an all-open attack on essential pricing freedom. Predatory pricing is a matter of concern for the competition commission and not of the investment policy. This way the entire organised retail sector would be deemed responsible for predatory pricing by the unorganised retail sector, just the same way online retail is held responsible for the same crime by the brick-and-mortar sector. Instead of going around banning the whole online discounts model, they should let all the retailers have exposure to investors who are ready to spend some money.

Further, the second and third restriction can be overcome by taking measures like creating separate organisations for the marketplace providers to carry out prohibited transactions. This ends up only adding to the transaction cost and does not benefit the Indian economy in any way whatsoever.

Government’s Ecommerce FDI policy is Still Not Liberal and Here's Why

The Narendra Modi government since assuming office in May, 2014 has talked about focusing on reviving the Indian economy by launching various schemes like Digital India, Make in India and Startup India etc. But, the one thing that the government is currently struggling with is the formation of policies to fully support the execution of their these schemes.

Holding testimonial to this fact is the recent clarification issued by the government regarding permissible foreign direct investment (FDI) in ecommerce. Many industrial experts are also branding this move by the government as a win of protectionism over liberalisation. According to them, these reforms though on the face look like an effort to boost the bewildering economy and put power in the hands of the consumer but they're instead a significant of capture by a strong lobby, especially, offline retail.

The Indian government needs to realise that their very own pet projects like Startup India etc. will also have to bear the brunt of these unnecessary policy restrictions that they're imposing and their spineless surrender to lobby groups. The one solution that the government can actually take is to open the gateway to all organised retail, whether offline or online, to 100 per cent Foreign Direct Investment (FDI).

The marketplace model is for sure one of the best ways to do ecommerce that man has been able to invent till now. It serves the producers and the consumers well. What's fascinating is the fact, that even the age old brick-and-mortar organised retail in the country also subscribes to the marketplace model in order to save its money on holding inventory.

Currently, the government has asked the following three restrictions to be adhered on the marketplace platform:

1) They're not allowed to offer discounts.
2) A particular vendor’s share of trade volume on the marketplace cannot exceed above 25 percent.
3) The seller will be wholly responsible for the post-sales delivery and customer satisfaction.

The first restriction placed by the government is an all-open attack on essential pricing freedom. Predatory pricing is a matter of concern for the competition commission and not of the investment policy. This way the entire organised retail sector would be deemed responsible for predatory pricing by the unorganised retail sector, just the same way online retail is held responsible for the same crime by the brick-and-mortar sector. Instead of going around banning the whole online discounts model, they should let all the retailers have exposure to investors who are ready to spend some money.

Further, the second and third restriction can be overcome by taking measures like creating separate organisations for the marketplace providers to carry out prohibited transactions. This ends up only adding to the transaction cost and does not benefit the Indian economy in any way whatsoever.

Govt Considering 100% FDI In E-Commerce Marketplace

There is a good news in store for e-commerce companies in India as they could get full foreign direct investment (FDI) if a proposal of Department of Industrial Policy and Promotion (DIPP) passes. Currently, the proposal is awaiting approval from the Finance Ministry and the Union Cabinet and just one step away for home-grown e-commerce firms like Flipkart and Snapdeal which have marketplace model.

As of now, the FDI norms do not allow a direct inflow of foreign funds in online or offline multi-brand retail or the online marketplace venture, thereby skirting the FDI hurdle

PTI reported on Tuesday that the government was considering permitting 100 percent FDI in the marketplace format of e-commerce to attract more foreign investments. This follows a recent meeting of top officials in DIPP, and the department of economic affairs and corporate affairs.

If the proposal gets green signal then e-commerce startups having marketplace format such as - Flipkart, Snapdeal, Paytm, Jabong, and Myntra, have been able to raise billions of dollars in FDI.

Till now, 100 per cent FDI is permitted in single-brand as well as in cash-and-carry or wholesale business. While no FDI is allowed in e-commerce activities, the online marketplace has been out of the purview of any rules.

The FDI proposal would also help the government sort out the ongoing legal matters and investigations into a number of e-commerce ventures after the Delhi High Court in November last year had asked the central government to probe 21 e-commerce entities for alleged violation of FDI rules. These 21 websites were listed in a petition by an industry body - All India Footwear Manufacturers and Retailers Association - that wanted the government to probe the violations of foreign investment laws.

[Top Image - Iksula]

Govt Considering 100% FDI In E-Commerce Marketplace

There is a good news in store for e-commerce companies in India as they could get full foreign direct investment (FDI) if a proposal of Department of Industrial Policy and Promotion (DIPP) passes. Currently, the proposal is awaiting approval from the Finance Ministry and the Union Cabinet and just one step away for home-grown e-commerce firms like Flipkart and Snapdeal which have marketplace model.

As of now, the FDI norms do not allow a direct inflow of foreign funds in online or offline multi-brand retail or the online marketplace venture, thereby skirting the FDI hurdle

PTI reported on Tuesday that the government was considering permitting 100 percent FDI in the marketplace format of e-commerce to attract more foreign investments. This follows a recent meeting of top officials in DIPP, and the department of economic affairs and corporate affairs.

If the proposal gets green signal then e-commerce startups having marketplace format such as - Flipkart, Snapdeal, Paytm, Jabong, and Myntra, have been able to raise billions of dollars in FDI.

Till now, 100 per cent FDI is permitted in single-brand as well as in cash-and-carry or wholesale business. While no FDI is allowed in e-commerce activities, the online marketplace has been out of the purview of any rules.

The FDI proposal would also help the government sort out the ongoing legal matters and investigations into a number of e-commerce ventures after the Delhi High Court in November last year had asked the central government to probe 21 e-commerce entities for alleged violation of FDI rules. These 21 websites were listed in a petition by an industry body - All India Footwear Manufacturers and Retailers Association - that wanted the government to probe the violations of foreign investment laws.

[Top Image - Iksula]