By Aditya Kalra
The New Delhi Government (Reuters) -india has written a proposal to relieve foreign investment rules to allow electronic commerce companies such as Amazon to buy products directly from Indian vendors and then sell them to foreign clients, showed a document.
Currently, India prohibits foreign electronic commerce companies from selling products directly to consumers, either at home or abroad, which only allows them to operate a market to connect buyers and vendors by a rate.
The policy has been a painful point between New Delhi and Washington for years, and Amazon has been pressing the Indian government to relieve the rules in the case of exports, Reuters reported.
The proposed changes occur when India and the United States struggle to iron the differences on a delayed commercial agreement, and despite the groups that support millions of small brick and mortar retailers who demand that the government reject the Amazon application. They say that the financial fire of the American company threatens its businesses.
Less than 10% of the small Indian companies that sell online participate in the country in global electronic commerce exports, “limited by complex documentation, compliance requirements,” said a 10 -page proposal of the General Directorate of Foreign Trade (DGFT), which is not public but was seen by Reuters on Thursday.
“The proposal provides for a third -party export facilitation model, in which an export entity dedicated to electronic commerce platforms would manage compliance.”
The DGFT and Amazon did not respond to Reuters consultations. The proposal will require a signature of the Indian Cabinet.
Amazon said in December that he helped generate $ 13 billion in cumulative exports for Indian sellers since 2015, and plans to increase that to $ 80 billion by 2030.
The DGFT draft said that relaxed rules would only apply to exports, and any breach of policy will attract rigid sanctions together with criminal action.
Last year, the Indian antimonopoolio guardian discovered that Amazon violated competition laws by giving preference to selected sellers, accusations he denies.
(Aditya Kalra report; Kirsten Donovan edition)
(Tagstotranslate) Amazon
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