FDI relaxation in E-commerce to help Grocery Startups in India

28 Jun,2016

Recently the Government of India has eased the norms for Foreign Direct Investment (FDI) in many sectors including e-commerce. The relaxation of norms in e-commerce, one of the fastest-growing sectors, is likely to have a positive impact on the startup ecosystem in India. As per the report of Icra, a domestic rating agency, the grocery startups would get the maximum advantage from the relaxations.

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Recently the Government of India has eased the norms for Foreign Direct Investment (FDI) in many sectors including e-commerce. The relaxation of norms in e-commerce, one of the fastest-growing sectors, is likely to have a positive impact on the startup ecosystem in India. As per the report of Icra, a domestic rating agency, the grocery startups would get the maximum advantage from the relaxations. 

As per the media reports, the agency said that the poor logistics and lack of storages for agricultural products are the major causes of inflation. It said that the move would bring more investment into the grocery and allied sectors, which will help to contain inflation.The startup ecosystem has been gaining momentum due to support from the government by relaxing many norms aiming to achieve ease of doing business status. The digital economy participation has been resulting in rapid expansion in the e-commerce system in India. 

digital strategy consulting

The ease in the norms for foreign investment in the agriculture and allied sectors would have a positive impact on the agriculture-based startups in India. On the contrary, the growth of internet users and favorable investment atmosphere would boost the e-commerce market in India. 

 

Foreign investors would like to invest in the grocery startups due to high potential, less competition and higher RoI.The schemes like Startup India, Digital India and Stand up India have given enough scope for the entrepreneurs to venture into startups.  The relaxations  of the FDI in some sectors have created a conducive environment for startups in the e-commerce segment in India. 

 

Recently the Government of India has eased the norms for Foreign Direct Investment (FDI) in many sectors including e-commerce. The relaxation of norms in e-commerce, one of the fastest-growing sectors, is likely to have a positive impact on the startup ecosystem in India. As per the report of Icra, a domestic rating agency, the grocery startups would get the maximum advantage from the relaxations. 

As per the media reports, the agency said that the poor logistics and lack of storages for agricultural products are the major causes of inflation. It said that the move would bring more investment into the grocery and allied sectors, which will help to contain inflation.The startup ecosystem has been gaining momentum due to support from the government by relaxing many norms aiming to achieve ease of doing business status. The digital economy participation has been resulting in rapid expansion in the e-commerce system in India. 

digital strategy consulting

The ease in the norms for foreign investment in the agriculture and allied sectors would have a positive impact on the agriculture-based startups in India. On the contrary, the growth of internet users and favorable investment atmosphere would boost the e-commerce market in India. 

 

Foreign investors would like to invest in the grocery startups due to high potential, less competition and higher RoI.The schemes like Startup India, Digital India and Stand up India have given enough scope for the entrepreneurs to venture into startups.  The relaxations  of the FDI in some sectors have created a conducive environment for startups in the e-commerce segment in India. 

 

Take a closer look

See for yourself how our ERP and CRM Solutions help your business grow.

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Healthcare Product

See how preventive healthcare product can help to reduce your losses

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