Amazon Lobbying Govt To Exempt Exports From FDI Restrictions

SUMMARY

Retailer bodies opposed any move to ease restrictions, saying that Amazon and Flipkart have “hurt” small Indian traders for years by offering discounts and favouring big sellers

In December 2024, Amazon said that it has helped generate $13 Bn in cumulative exports for Indian sellers since 2015, adding that it plans to increase the number to $80 Bn by 2030

In February, Amazon also renewed an MoU with DGFT to accelerate ecommerce exports from the country

Amazon is reportedly lobbying the commerce ministry to ease foreign direct investment (FDI) rules to enable the ecommerce giant to export products from India.

Sources told Reuters that Amazon executives urged ministry officials, during a meeting on Thursday (August 21), to exempt exports from existing FDI restrictions. This, the company reportedly said, would enable it to buy goods directly from Indian sellers for sale to international customers.

It is pertinent to note that the Indian government currently bars ecommerce platforms from stocking and selling goods directly to consumers. Instead, existing rules only allow marketplaces to connect buyers and sellers for a fee. These restrictions also extend to exports.

However, three retailer bodies opposed any move to ease restrictions for ecommerce players during the meeting with ministry officials. Making their case, the retailer groups reportedly reiterated their long-standing concerns that Amazon and Flipkart have “hurt” small Indian traders for years by offering discounts and favouring certain big sellers.

Inc42 has reached out to Amazon for a comment on the matter. This story will be updated upon receiving the response.

Amazon’s pitch comes at a time when the government has been looking to spur exports from the country. In September last year, the Central Board of Indirect Taxes and Customs (CBIC) extended benefits under the remission of duties and taxes on exported products (RoDTEP) scheme to shipments made through courier mode.

Last year, commerce secretary Sunil Barthwal also reportedly said that the ministry was working on a regulatory framework to boost ecommerce exports. Previously, the Directorate General of Foreign Trade (DGFT) was also said to be working with the Reserve Bank of India (RBI) and other concerned ministries to formulate steps to promote ecommerce exports in the country.

As per the government’s internal estimates, the Centre has set eyes on enabling $200-$300 Bn in ecommerce exports from India by 2030.

Meanwhile, Amazon, too, has been stepping up efforts to bolster exports from India. In February, the ecommerce giant renewed an MoU with DGFT to accelerate ecommerce exports from the country.

Prior to this in December 2024, the US-based big tech major also said that it has helped generate $13 Bn in cumulative exports for Indian sellers since 2015. The company added that it plans to increase the number to $80 Bn by 2030.