NOVEMBER 20, 2014

FDI IN INDIAN B2C E-COMMERCE: A STUDY OF

ITS CONSEQUENCES AND IMPLEMENTATION
STRATEGY
CCS: TERM 6

Guided By:
Prof. Murali Patibandla

Submitted by:
Chaitanya Deepak P
Sridhar Sampathirao

1311366
1311407

Proposal for CCS Project

Title of the CCS: FDI in Indian B2C e-Commerce: A Study Of Its Consequences and Implementation
Strategy
Name of the Guide: Prof. Murali Patibandla
Name(s) and Roll number(s) of the Student(s):
Chaitanya Deepak P (1311366)
Sridhar Sampathirao (1311407)
Need for the proposed work:
Global e-commerce market is growing at a rapid pace and India is not left behind in this race. B2C
market is the selling that happens from business to consumers electronically. Indias e-commerce
market, especially B2C, is fast expanding and will reach $56 billion by 2023 as per ASSOCHAM.
Indian Government has also recently shown intent to allow FDI in this market. Before going
ahead, it is imperative to look at the pros and cons of adapting this in Indian scenario and chalk
out plans to confront potential challenges. It is important to analyze for what percentage and for
what kind of goods is FDI best for the Indian scenario in this kind of market.
Objectives:
The main objectives of this project are:
1. Study and analyze the overall effect of allowing FDI in Indian E-Commerce B2C market.
2. Examine the pros and cons of allowing 100% FDI in this market.
3. Identify potential challenges that may arise and suggest possible ways to tackle them.
4. Suggest an overall strategy that Indian Government should adapt in introducing FDI in this
market.
Brief description of the CCS:
We intend to study and analyze the effect of allowing Foreign Direct Investment (FDI) in Indian
E-Commerce B2C market and suggest an ideal strategy in terms of the extent to which this should
be allowed. We would also take into consideration the divided interests of Indian ecommerce
giants such as Flipkart, Snapdeal and foreign marketplace model sellers such as Amazon and
eBay. The impact on the brick and mortar stores which may eventually lead to large scale
unemployment will be studied. The spill over effects on other industries such as logistics, IT etc.
will be examined. The effects on consumer convenience and consumer service will also be
reflected upon.
Through this project we aim to analyze various parameters that should be considered before
allowing FDI. We will look at parameters such as type of goods for which FDI should be allowed,
the extent to which FDI should be implemented, the genre of foreign investors who can enter the
market and the limits on local sourcing. Regulation in India allows 100% FDI in B2B market and in

the market place model. We will take into account key challenges faced in these markets to assess
the scenario for B2C market.
Keeping all the pros and cons in view, the best strategy to go ahead with FDI in this market will
be recommended.
Methodology:
The methodology of the project involves:
Primary sources which include survey and interviews of potential stakeholders such as small scale
shopkeepers, Indian retail players, foreign retail players and consumers. Secondary sources
include multiple research publications, journals, articles and books related to the topic. All the
topic related content shall be studied, analysed and a best strategy that fits the Indian scenario
shall be suggested.
Detailed work plan along with time schedule:
Dec 15 Dec 24
Dec 25 Jan 24
Jan 25 Feb 15

Literature Survey
Primary Study and Findings
Final recommendations

Expected Outcome:
The expected outcomes of the project include the following:
1. A detailed analysis of the E-Commerce Industry in India
2. A go-to strategy for FDI implementation in Indian ecommerce B2C market
References (list the books, articles, etc. in detail):
http://www.academia.edu/7330614/FDI_IN_E-COMMERCE_PROS_and_CONS
http://dipp.nic.in/English/Discuss_paper/Discussion_paper_ecommerce_07012014.pdf
http://www.mondaq.com/india/x/325224/international+trade+investment/FDI+in+B2C+eretail
http://in.reuters.com/article/2014/07/10/india-budget-ecommerce-idINKBN0FF16B20140710
http://economictimes.indiatimes.com/industry/services/retail/assocham-for-allowing-fdi-in-ecommerce-retailing/articleshow/44790649.cms