Reuters exclusively reported this week India was considering revising the policy after complaints from traders who accuse Amazon and Walmart Inc's Flipkart of creating complex structures to bypass investment rules. The U.S. companies deny any wrongdoing.
"Mr. Goyal told us the government will address concerns about alleged violations of current rules. The new rules will be issued shortly," Praveen Khandelwal, secretary general of CAIT told Reuters.India's ministry of commerce did not immediately respond to a request for comment on CAIT's statement. Unhappy domestic traders say foreign e-commerce businesses indulge in unfair business practices that use steep discounts to target rapid growth, allegations the companies deny.
Now the government is considering tweaks to prevent those arrangements even if the e-commerce firm holds an indirect stake in a seller through its parent, Reuters reported.