Quote from CEO & Founder of Stayzilla.com Yogendra Vasupal on FDI in e-commerce:
E-commerce is a sector which is not yet mature in India and startups face innumerable challenges such as the touch and feel barrier (digital divide), infrastructural issues (logistics), online payment issues and stiff competition. They need access to funds to survive this tough, initial growth phase. Currently, the bulk of the investments happening in the sector are being taken up by the big Indian players who anyway find ways to circumvent the current regulation by creating complicated holding structures. While the international players setup marketplace models which allow them to operate. The real players who suffer from the current regulation, are the small and medium enterprises. If the sector is de-regulated more small & medium internet companies in India would not only survive but continue to scale resulting in greater employment opportunities. This would be a great way to create jobs for the millions of educated Indians who are joining the workforce every day as ecommerce has knowledge based workforce as the foundation of its retail strategy.