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Business
Competere chief warns partial e‑commerce FDI could be worse than no opening
✍️ The Hindu
🗓 22 Aug 2026, 09:40 PM
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The head of industry body Competere said that a limited foreign‑direct investment allowance for e‑commerce may prove more harmful than keeping the sector closed to overseas capital.
New Delhi – The Indian government’s proposal to allow a partial opening of foreign direct investment (FDI) in the e‑commerce sector has drawn sharp criticism from industry lobbyist Competere. The body’s chief expressed that a limited FDI framework could create more challenges for domestic players than a complete ban on overseas capital.
In remarks reported by The Hindu, the Competere chief argued that partial liberalisation may lead to regulatory ambiguities, uneven competition and could undermine the growth of home‑grown platforms. He warned that without a clear, comprehensive policy, the sector could face “almost worse” outcomes than if no foreign investment were permitted at all.
The statement adds to an ongoing debate among policymakers, online retailers and consumer groups about the best way to balance foreign capital inflows with the protection of Indian e‑commerce enterprises. While the government has not yet finalised the rules, the Competere chief’s comments highlight the concerns of domestic stakeholders ahead of any legislative decision.
In remarks reported by The Hindu, the Competere chief argued that partial liberalisation may lead to regulatory ambiguities, uneven competition and could undermine the growth of home‑grown platforms. He warned that without a clear, comprehensive policy, the sector could face “almost worse” outcomes than if no foreign investment were permitted at all.
The statement adds to an ongoing debate among policymakers, online retailers and consumer groups about the best way to balance foreign capital inflows with the protection of Indian e‑commerce enterprises. While the government has not yet finalised the rules, the Competere chief’s comments highlight the concerns of domestic stakeholders ahead of any legislative decision.