India Relaxes E-Commerce Investment Rules for Exports, Benefiting Amazon
India's government has relaxed foreign investment rules to allow e-commerce companies like Amazon to buy products directly from Indian sellers and export them overseas, marking a significant policy shift. The change, which Amazon lobbied for, is intended to boost exports and comes amid stalled US-India trade talks. Previously, foreign e-commerce firms were restricted to operating as marketplaces connecting buyers and sellers, a policy designed to protect small retailers. The Confederation of All India Traders (CAIT) opposes the relaxation, warning it could be abused and give foreign firms unfair control over supply chains. The move follows a 2024 antitrust investigation that found Amazon and Flipkart violated competition laws by favoring select sellers. Amazon aims to achieve $80 billion in cumulative exports from India by 2030. India's e-commerce market is projected to grow from $90 billion to $250 billion by 2030.
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