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

Amazon is lobbying the Indian government for an export-only carve-out from restrictive foreign investment rules that currently prevent it and Walmart from holding inventory or selling directly to consumers. The U.S. e-commerce giant argues these constraints, originally designed to protect small retailers, unnecessarily extend to cross-border transactions.

During a Thursday meeting with India's Commerce Ministry, Amazon executives proposed a narrow policy adjustment that would allow its local unit to purchase goods from Indian suppliers for exclusive export to global customers. The move aligns with Amazon's recent $233 million investment pledge to strengthen fulfillment infrastructure and small business support in India.

Small retailer associations vigorously oppose any concessions to foreign e-commerce players, creating tension in ongoing India-U.S. trade negotiations. The dispute highlights the delicate balance between protecting domestic commerce and facilitating global trade flows.