{"id":92014,"date":"2025-06-01T11:12:09","date_gmt":"2025-06-01T11:12:09","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=92014"},"modified":"2025-06-01T11:12:09","modified_gmt":"2025-06-01T11:12:09","slug":"with-reference-to-foreign-owned-e-commerce-firms-operating-in-india-w","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-foreign-owned-e-commerce-firms-operating-in-india-w\/","title":{"rendered":"With reference to foreign-owned e-commerce firms operating in India, w"},"content":{"rendered":"<p>With reference to foreign-owned e-commerce firms operating in India, which of the following statements is\/are correct ?<\/p>\n<ul>\n<li>They can sell their own goods in addition to offering their platforms as market-places.<\/li>\n<li>The degree to which they can own big sellers on their platforms is limited.<\/li>\n<\/ul>\n<p>Select the correct answer using the code given below :<\/p>\n<p>[amp_mcq option1=&#8221;1 only&#8221; option2=&#8221;2 only&#8221; option3=&#8221;Both 1 and 2&#8243; option4=&#8221;Neither 1 nor 2&#8243; correct=&#8221;option2&#8243;]<\/p>\n<div class=\"psc-box-pyq-exam-year-detail\">\n<div class=\"pyq-exam\">\n<div class=\"psc-heading\">This question was previously asked in<\/div>\n<div class=\"psc-title line-ellipsis\">UPSC IAS &#8211; 2022<\/div>\n<\/div>\n<div class=\"pyq-exam-psc-buttons\"><a href=\"\/pyq\/pyq-upsc-ias-2022.pdf\" target=\"_blank\" class=\"psc-pdf-button\" rel=\"noopener\">Download PDF<\/a><a href=\"\/pyq-upsc-ias-2022\" target=\"_blank\" class=\"psc-attempt-button\" rel=\"noopener\">Attempt Online<\/a><\/div>\n<\/div>\n<section id=\"pyq-correct-answer\">Option B is correct.<\/section>\n<section id=\"pyq-key-points\">Foreign-owned e-commerce marketplace firms operating in India are primarily allowed to act as platforms connecting buyers and sellers. Indian regulations restrict them from selling their own goods on the platform and also limit their ownership stakes in any single seller on the platform.<\/section>\n<section id=\"pyq-additional-information\">Statement 1 is incorrect. According to India&#8217;s Foreign Direct Investment (FDI) policy for e-commerce, especially for the &#8216;marketplace&#8217; model (which large foreign firms like Amazon and Flipkart use), these entities are not permitted to sell goods owned by them directly or indirectly on their platforms. They must operate solely as a marketplace connecting buyers and sellers.<br \/>\nStatement 2 is correct. The FDI policy for e-commerce marketplace limits the equity participation of the marketplace entity or its group companies in any seller on the marketplace to 10%. It also restricts the total sales from a single vendor (or its group companies) on the marketplace to 25% of the marketplace&#8217;s total sales. These limitations are intended to prevent the marketplace operator from unduly influencing prices or controlling inventory, thereby promoting fair competition.<\/section>\n","protected":false},"excerpt":{"rendered":"<p>With reference to foreign-owned e-commerce firms operating in India, which of the following statements is\/are correct ? They can sell their own goods in addition to offering their platforms as market-places. The degree to which they can own big sellers on their platforms is limited. Select the correct answer using the code given below : &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"With reference to foreign-owned e-commerce firms operating in India, w\" class=\"read-more button\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-foreign-owned-e-commerce-firms-operating-in-india-w\/#more-92014\">Detailed Solution<span class=\"screen-reader-text\">With reference to foreign-owned e-commerce firms operating in India, w<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1092],"tags":[1108,1120,1386],"class_list":["post-92014","post","type-post","status-publish","format-standard","hentry","category-upsc-ias","tag-1108","tag-economic-development","tag-tertiary-sector","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>With reference to foreign-owned e-commerce firms operating in India, w<\/title>\n<meta name=\"description\" content=\"Option B is correct. Foreign-owned e-commerce marketplace firms operating in India are primarily allowed to act as platforms connecting buyers and sellers. Indian regulations restrict them from selling their own goods on the platform and also limit their ownership stakes in any single seller on the platform.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-foreign-owned-e-commerce-firms-operating-in-india-w\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"With reference to foreign-owned e-commerce firms operating in India, w\" \/>\n<meta property=\"og:description\" content=\"Option B is correct. Foreign-owned e-commerce marketplace firms operating in India are primarily allowed to act as platforms connecting buyers and sellers. Indian regulations restrict them from selling their own goods on the platform and also limit their ownership stakes in any single seller on the platform.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-foreign-owned-e-commerce-firms-operating-in-india-w\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2025-06-01T11:12:09+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"With reference to foreign-owned e-commerce firms operating in India, w","description":"Option B is correct. Foreign-owned e-commerce marketplace firms operating in India are primarily allowed to act as platforms connecting buyers and sellers. Indian regulations restrict them from selling their own goods on the platform and also limit their ownership stakes in any single seller on the platform.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-foreign-owned-e-commerce-firms-operating-in-india-w\/","og_locale":"en_US","og_type":"article","og_title":"With reference to foreign-owned e-commerce firms operating in India, w","og_description":"Option B is correct. Foreign-owned e-commerce marketplace firms operating in India are primarily allowed to act as platforms connecting buyers and sellers. Indian regulations restrict them from selling their own goods on the platform and also limit their ownership stakes in any single seller on the platform.","og_url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-foreign-owned-e-commerce-firms-operating-in-india-w\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2025-06-01T11:12:09+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-foreign-owned-e-commerce-firms-operating-in-india-w\/","url":"https:\/\/exam.pscnotes.com\/mcq\/with-reference-to-foreign-owned-e-commerce-firms-operating-in-india-w\/","name":"With reference to foreign-owned e-commerce firms operating in India, w","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2025-06-01T11:12:09+00:00","dateModified":"2025-06-01T11:12:09+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"description":"Option B is correct. Foreign-owned e-commerce marketplace firms operating in India are primarily allowed to act as platforms connecting buyers and sellers. 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