Offline retailers say sales pressure may ease due to new E-commerce FDI norms

New Delhi: India’s new foreign direct investment (FDI) guidelines for e-commerce companies could bring respite to brick-and-mortar stores that have, over the years, struggled to keep up with steep discounting and promotions offered by internet retailers.

On 26 December, the government restricted e-commerce firms from entering into exclusive deals with sellers and barred them from selling goods of companies in which they have a stake. The guidelines took effect on 1 February.

As heavily funded e-commerce portals offered generous deals, offline retailers were forced to stretch sales periods, sell their goods online, and offer steep discounts.