With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct ? 1. They can sell their own goods in addition to offering their platforms as market-places, 2. The degree to which they can own big sell

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Submitted by examrobotsa on

Q: 6 (IAS/2022)
With reference to foreign-owned e-commerce firms operating in India, which of the following statements is/are correct ?
1. They can sell their own goods in addition to offering their platforms as market-places,
2. The degree to which they can own big sellers on their platforms is limited. ^
Select the correct answer using the code given below :

question_subject: 

Economics

question_exam: 

IAS

stats: 

0,200,268,86,200,163,19

keywords: 

{'own goods': [0, 0, 0, 1], 'market': [0, 0, 1, 0], 'india': [8, 1, 7, 13], 'big sellers': [0, 0, 0, 1], 'foreign': [0, 0, 0, 1], 'platforms': [0, 0, 0, 2]}

The correct answer is option 4, "Neither 1 nor 2". To understand this, let`s dissect both the statements:

1. "They can sell their own goods in addition to offering their platforms as market-places": This statement is incorrect. Foreign-owned e-commerce firms operating in India are not allowed to sell their own products. They are only allowed to function as a marketplace, providing a platform for other sellers to sell their products.

2. "The degree to which they can own big sellers on their platforms is limited": This is also incorrect. As per India`s FDI policy, 100% FDI is permitted in the marketplace model of e-commerce, but e-commerce entities providing a marketplace will not directly or indirectly influence the sale price of goods or services and shall maintain a level playing field. So, they cannot own sellers on their platforms.

Hence, neither of the statements are correct which makes the answer to be option 4, "Neither 1 nor 2".