Amazon Pushes for Export-Only Exemption from India’s Foreign Investment Rules

Amazon maneuvers for regulatory carve-out in key growth market.

Strategic Lobbying Efforts

The e-commerce giant is pressing New Delhi for special treatment on foreign investment restrictions—but only for export-focused operations. This isn't about opening up to Indian consumers; it's about building export hubs while sidestepping broader market access rules.

Regulatory Arbitrage Play

Amazon's move highlights how multinationals constantly seek loopholes in protectionist economies—because why play by the rules when you can just lobby for better ones? Meanwhile, local competitors get to enjoy the full regulatory buffet without special exemptions.

Finance Irony Alert

Another day, another corporation begging for regulatory favors while free market advocates somehow keep straight faces. The only thing more flexible than India's compliance framework? The ethics of multinational lobbying budgets.

Small retailers push back against foreign giants

Three associations representing small retailers pushed back against any additional relief for Amazon and Walmart-owned Flipkart, which also attended, the sources said. They reiterated allegations that Amazon and Flipkart tilt the field toward a few large online sellers and use discounting that undercuts smaller businesses.

Both companies say they follow Indian regulations. As of Friday, Amazon India and Flipkart had not replied to Reuters’ questions. India’s Commerce Ministry likewise did not immediately respond.

In December, Amazon said it has enabled $13 billion in cumulative exports for Indian sellers since 2015 and aims to lift that to $80 billion by 2030. Amazon and Flipkart remain major players in India’s e-commerce market, valued at about $125 billion in 2024 and projected to exceed $345 billion by 2030, according to the India Brand Equity Foundation.

Amazon says exemption would aid small sellers with exports

During the meeting, Amazon argued that an export exemption would benefit small sellers by letting the company handle customs procedures and widen access to overseas buyers, three sources said.

“It was a heated meeting … the small traders and their supporters opposed it, saying they wanted no concession for foreign e-commerce players,” said one of the four sources who attended.

An internal agenda for the session, reviewed by Reuters, indicates the government has not yet made a decision.

The paper stresses that any export carve-out must not enable foreign e-commerce firms to “engage in direct sale of listed goods/products to Indian consumers,” which officials worry would harm small shops. It also says any change should “ensure sufficient demarcation between the goods/products meant only for exports and other … meant for sale to Indian consumers,” the document states.

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