India considering tweaking clause on equity - sources India government spokesman says policy change being considered Past changes have hit Amazon, Walmart
NEW DELHI, Jan 19 (Reuters) - 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.
The government discussions coincide with a growing number of complaints from India’s brick-and-mortar retailers, which have for years accused Amazon and Walmart Inc-controlled Flipkart of creating complex structures to bypass federal rules, allegations the U.S. companies deny.
Walmart and Flipkart did not immediately respond to a request for comment.
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 details. It s a work in progress, Baweja said, adding an internal meeting on the subject last took place about a month ago. Of course Amazon s a big player so whatever advice, whatever suggestions, whatever recommendations they make, they are also given due consideration.
Frayed ties
The 2018 rules forced Amazon and Flipkart to rework their business structures and soured relations between India and the United States, as Washington said the policy change favoured local e-tailers over US ones.
India plans foreign investment rule changes that could hit e-commerce bworldonline.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bworldonline.com Daily Mail and Mail on Sunday newspapers.
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.
NEW DELHI: 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, to restructure their ties with some major sellers.
The government discussions coincide with a growing number of complaints from India’s brick-and-mortar retailers, which have for years accused Amazon and Walmart-controlled Flipkart of creating complex structures to bypass federal rules, allegations the US companies deny.
India only allows foreign e-commerce players to operate as a marketplace to connect buyers and sellers. It prohibits them from holding inventories of goods and directly selling them on their platforms.