Previously, brands with significant foreign investment had to open a physical store in India before selling online in the market and needed to source"of the value of goods purchased" from India, making it difficult for brands to sell in the country.
Foreign brands may now seek out India's growing e-commerce opportunity. The ability to sell online without a physical store and face weaker sourcing requirements should remove obstacles that previously prevented foreign brands from selling in India. For example,The opportunity to sell online may attract brands most, as the country's e-commerce market isto grow from $38.
Prior to these adjustments to the FDI requirements, brands may have had to sell on third-party marketplaces — but now they can take their products off those platforms. Now that they can sell directly to Indian consumers, foreign brands may prefer to handle the full shopping experience and pricing of their products to control their brand images. To do so, they may pull their items off marketplaces, leading consumers who want those products to the brands' sites.