FDI is going to play a bigger role in different sectors of business including e-commerce as India is only country right now which is have its fundamentals very strong and reserve a lot of potential of development in coming times. E-commerce is buzzword right now and getting a lot of attention.
Hi - Very interesting question! I think it is very reasonable to expect that foreign companies will influence e-commerce in India (and elsewhere). However, it is not certain that most of that involvement will happen through foreign direct investment (FDI).
Foreign companies may also form alliances with Indian firms, perhaps as a way to improve market access (get linkages and market knowledge) while reducing risks. I would expect FDI to occur for regulatory reasons, e.g. that local laws may demand that companies must be registered locally to be allowed to operate, but also for more business related reasons, e.g. that certain parts of the supply chain must be monitored closely.
In any case, foreign presence is very likely to be part of India's e-commerce future, perhaps even a driving force in developing it.
Thanks a lot for valuable information sir, send me if you have any notes on E-commerce and customer loyalty towards E-commerce. I am doing my phd topic on this area.
phani
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