Q6 · UPSC Prelims 2022 · Set A · Economy

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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 marketplaces.2.The degree to which they can own big sellers on their platforms is limited.Select the correct answer using the code given below:

A 1 only
B 2 only
C Both 1 and 2
D Neither 1 nor 2

Correct answer: (d) Neither 1 nor 2

Explanation

  1. A

    1 only

    1 only. Inventory FDI in B2C e-commerce is not the permitted model.

  2. B

    2 only

    2 only. The paper keys neither limb as a correct statement of the rule.

  3. C

    Both 1 and 2

    Both. Marketplace rules do not allow the platform to run as a retailer of its own goods.

  4. D

    Neither 1 nor 2

    Neither. Foreign e-commerce cannot sell its own goods on the marketplace model as a retailer; the ‘own big sellers’ sentence is not keyed as a correct cap statement here.

Summary. Official key is (d) neither. FDI policy for foreign e-commerce in India is marketplace-only: the platform is not to sell its own inventory. Statement 2’s ownership-of-sellers line is not counted as a correct statement in this item.

Same topic · past papers

UPSC has asked this before

These previous-year questions sit on the same topic. Open one to practise the earlier ask.

  1. 2024 · Q42 · General Studies · 2 marks

    Consider the following statements: 1. In India, Non- Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India. 2. In India, Foreign Institutional Investors can hold the Government Securities (G-Secs). 3. In India, Stock Exchanges can offer separate trading platforms for debts. Which of the statements given above is/are correct?

    View answer →

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