In a strategic move aligned with India’s export ambitions, Amazon is lobbying the commerce ministry to ease foreign direct investment (FDI) rules that currently limit ecommerce exports. According to a Reuters report, Amazon executives met ministry officials on August 21, urging for an exemption from FDI restrictions that would allow the platform to buy goods directly from Indian sellers for international distribution.
Under current regulations, ecommerce platforms operating under the marketplace model in India are prohibited from stocking and selling products directly to consumers—both domestically and internationally. These rules, designed to protect small retailers, require platforms like Amazon and Flipkart to merely act as intermediaries between sellers and buyers.
However, Amazon argues that exempting exports from these rules would unlock significant potential for Indian sellers and help the company contribute more to India’s growing ecommerce export ecosystem.
Despite Amazon’s proposal, three major Indian retailer associations strongly opposed any relaxation in FDI norms during the same meeting. They reiterated their longstanding concerns that large ecommerce platforms have historically favored select sellers and engaged in discounting practices that disadvantage smaller traders.
Amazon’s appeal comes at a time when the Indian government is actively seeking to increase ecommerce exports. In September 2024, the Central Board of Indirect Taxes and Customs (CBIC) extended RoDTEP benefits to shipments sent via courier mode. Commerce Secretary Sunil Barthwal has also hinted at a new regulatory framework to encourage ecommerce-driven exports.
The Directorate General of Foreign Trade (DGFT), in collaboration with the Reserve Bank of India (RBI), is working on further export facilitation measures. The government has reportedly set a target of $200–$300 billion in ecommerce exports by 2030.
Amazon, too, has committed to supporting this vision. In December 2024, the ecommerce giant reported $13 billion in cumulative exports from Indian sellers since 2015 and pledged to increase this to $80 billion by 2030. Earlier this year, it renewed its MoU with the DGFT to accelerate ecommerce export efforts from India.
