Forget winning, can Amazon survive in India?
Despite $6.5 billion investment and seven-and-a-half years of operations in India, Amazon is facing mounting challenges in the South Asian nation
During a visit to India in 2014, Amazon chief executive Jeff Bezos made a splashy announcement: His firm was investing $2 billion in the South Asian nation, just a year after beginning operations in the country.
Amazon’s announcement underscored how far India had come to open up to foreign firms. The nation, which had largely kept doors shut to international giants between its independence in 1947 to liberalization in 1991, has slowly transformed itself into the world’s largest open market.
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.
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Indian Trader Group Says Minister Pledges Strict Foreign Investment Rules For E-Commerce
India s e-commerce retail market is seen growing to $200 billion a year by 2026, from $30 billion in 2019, the country s investment promotion agency Invest India estimates.
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An India trader group representing millions of brick-and-mortar retailers on Friday said it has received government assurances that stringent changes will be made to foreign investment rules for e-commerce, a move that could hit Amazon.com Inc.
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.