The new estimates come after India’s new foreign direct investment (FDI) rules regarding online marketplaces released in December 2018. The new FDI rules, which came into effect on February 1, bar online marketplaces with foreign investments from selling products from sellers in which the online marketplaces hold a stake.
According to Morgan Stanley’s report, the regulations are expected to pose headwinds to growth in the near term as some companies restructure their businesses, processes, and contracts to be compliant.
In addition, the emergence of an online model is expected in India, which could drive growth in the medium to longer term, according to Times Now.
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