Chinese smartphone makers have already disrupted the Indian smartphone market and now it looks like they want to shake the e-commerce scenario in the country as well. Alibaba, the Chinese e-commerce giant is planning to enter the Indian e-commerce market, according to a latest report from PTI.
Alibaba group president J Michael Evans told PTI after meeting Communications and IT minister Ravi Shankar Prasad,
We are planning to enter the e-commerce business in India in 2016. We have been exploring very carefully the e-commerce opportunity in this country, which we think is very exciting against the backdrop of Digital India.
Evans further added that the company plans to come to India and work to serve both customers, consumers and small businesses because that is the history and the DNA of Alibaba. Alibaba said it is evaluating all opportunities to build the business organically. At the moment, it is not clear, how the company will enter India. It could come alone as an online marketplace player or enter e-commerce as a partner with another company. Last year, it was reported that Alibaba will set up a mobile and commerce start-up incubator in India.
At present, foreign direct investment is not permitted in the e-commerce sector but there are no restrictions on foreign money in online marketplace. Alibaba already has a made a significant investment in e-commerce firms such as Snapdeal and Paytm in India. The Indian e-commerce market is said to be worth $38 billion by the end of 2016, a 67% jump from a year ago, as per Assocham. This is a good news for the Indian economy but the rate at which the Chinese companies are entering India is alarming. It looks like the land of Red Dragons is going to be an important part of the Indian marketplace in the long run.