This refers to the news ‘Centre allows 100% FDI in marketplace-based e-tailing’ (March 30). The e-commerce market has taken India by storm and is virtually transforming the shopping behaviour of the netizens in the country. The industry might cross a turnover of $16 billion this year and reach $100 billion by 2020, making it the fastest growing e-commerce market in the world.
E-tailing was lurching in the dark for want of policy clarity on FDI. Now the decision of the Centre has cleared the air. The policy has virtually ruled out FDI in inventory-based e-tailing.
Another progressive feature of the policy is that it permits the marketplace to provide support services to sellers in the form of warehousing, logistics, payment collection and other services.
Thrissur, Kerala That the Centre has said ‘yes’ to 100 per cent FDI in e-commerce retail business is welcome for three reasons. One, India can enhance its foreign exchange earnings considerably. Two, the consumption frontier of the people will increase. Three, the domestic retailers will have to step up to the plate to compete and sell commodities of good quality to consumers.
But at the same time, it is imperative that the foreigners do not dominate too much. The government must ensure that sub-standard products from foreign countries are not sold in our country.
S Ramakrishnasayee
Ranipet
Swachh Bharat
This refers to the editorial “Cleaning up India” ( March 29 ). It is disturbing that the government intends to micro-manage the corporate social responsibility (CSR) spend by way of reserving 30 per cent exclusively for Swachh Bharat. It should be understood that before the introduction of the mandatory 2 per cent CSR spend with effect from April 1, 2014, most big corporates were already engaged in voluntary CSR activities in fields such as education, health, sanitation, nutrition, conservation of environment, etc.
Over a period of time they achieved expertise these areas. That is why the Companies Act listed wide range of “permissible activities” under CSR spend. Now if the government directs the corporate to divert 30 per cent of their CSR spend to Swachh Bharat, it will require reallocation of resources from existing efficient use to relatively inefficient use. Trupti Goyal
Jodhpur
Proverbial camel in PWF tent
In Tamil Nadu, the People’s Welfare Front (PWF) was originally floated by VCK leader Thirumavalavan with both Communist parties as allies. Meanwhile, Vaiko who was deserted with the exit of most of his deputies and party cadres, slowly entered the PWF tent like the proverbial camel and grabbed the mantle from Thirumavalavan and started projecting himself as the de facto leader of PWF. Sensing the confusion in the mind of DMDK chief Vijayakanth, Vaiko played his cards carefully not only to get the DMDK to the PWF alliance but also to make Vijayakanth declare him (Vaiko) as the convenor of the new alliance.
Vaiko has succeeded in making Suthish, brother in law of Vijayakanth, announce that Vaiko would be the deputy CM if the PWF won the elections.
Tharcius S Fernando
Chennai
VAT’s the issue?
The Delhi government has cut value-added tax (VAT) rates on few items. It should be mandatory for all establishments to mention maximum retail prices (MRP) inclusive of all taxes and other levies as applicable to such items. It is strange that governments issue advertisements that say, “Do not pay more than the MRP”, knowing well that most restaurants charge VAT separately.
M Kumar
Victory for common man
Vijay Mallya’s proposal to repay ₹4,000 crore to a consortium of banks is a victory for the common man faith in judiciary and conveys that state-run banks are not meant for charity but are here to do serious business.
One should also appreciate the legal case for expediting the process, which augurs well for good corporate governance.
Vikram Sundaramurthy
Chennai
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