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Amazon, Flipkart seek easing of FDI rules to boost exports from India
Platforms, including Flipkart and Amazon, have urged the commerce ministry to exempt exports from current restrictions, even as Indian retailer groups push back citing harm to small traders.
Amazon has announced plans to enable over $80 billion in cumulative e-commerce exports from India by 2030.
During a consultation convened by DPIIT (Department for Promotion of Industry and Internal Trade), leading e-commerce companies sought relaxation of FDI norms, specifically requesting permission to hold seller inventory for exports. Such a move would enable greater participation from small traders and sellers, expanding India’s export base in line with Prime Minister Narendra Modi’s vision of making India a global hub for e-commerce exports.
Reportedly, leading e-commerce executives pressed the case during a meeting with ministry officials on August 21, asking that exports be exempted from the current FDI rules that bar e-commerce platforms from stocking and selling goods directly.
At present, Indian regulations only allow online marketplaces like Amazon and Flipkart to connect buyers and sellers for a fee, with restrictions extending to cross-border shipments as well. Direct sales to consumers, domestic or overseas, remain off-limits.
The proposal, however, drew opposition from three major retailer associations at the meeting.
The groups reportedly argued that loosening rules for e-commerce companies would tilt the market further against small traders, who they allege have already been disadvantaged by discounting practices and preferential treatment to select large sellers.
The push comes at a time when the Indian government is working to ramp up e-commerce exports. The Centre has set an ambitious target of $200–300 billion in e-commerce exports by 2030, and agencies including the Directorate General of Foreign Trade (DGFT), the Reserve Bank of India (RBI), and the commerce ministry are working on a regulatory framework to facilitate the sector.
Amazon has made e-commerce exports a key pillar of its India strategy. Earlier this year, the company renewed an MoU with the DGFT to accelerate Indian sellers’ access to global markets.
Amazon says it has already facilitated $13 billion in cumulative exports from India since 2015 and aims to grow that figure to $80 billion by 2030.
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