India is considering revising its foreign investment rules for e-commerce, three sources and a government spokesman told Reuters, a move that could compel players, including Amazon.com Inc, to restructure their ties with some major sellers.
Amazon and Walmart's Flipkart were last hit in Dec. 2018 by investment rule changes that barred foreign e-commerce players from offering products from sellers in which they have an equity stake. Yogesh Baweja, the spokesman for the Ministry of Commerce & Industry, which is working on the issue, confirmed to Reuters any changes will be announced through a so-called"press note," which contains foreign direct investment rules. He did not give any details.
India's e-commerce retail market is seen growing to US$200 billion a year by 2026, from US$30 billion in 2019, the country's investment promotion agency Invest India estimates. In the face of growing trader complaints and an antitrust investigation, Goyal last year said Amazon was not doing"a great favour to India" by making fresh investments.