The relaxation addresses long-standing concerns faced by Amazon and Walmart over India's restrictive e-commerce rules, which have remained a major point of discussion between New Delhi and Washington. The move comes at a time when India and the United States are working to finalize a trade agreement, with both sides indicating that negotiations are nearing completion.
To protect traditional brick-and-mortar retailers, India had previously restricted foreign e-commerce companies from directly selling goods to consumers in domestic and international markets. These companies were permitted only to operate marketplace platforms connecting buyers and sellers while charging service fees. The government has now relaxed the rules specifically to encourage exports and expand access to global markets.
The Indian government stated that the decision was taken to "facilitate greater exports through easier and increased access of global markets."
Amazon and Flipkart, Walmart's e-commerce company in India, did not respond to requests for comments.
The policy change was introduced despite opposition from industry groups representing small retailers, which had raised concerns during closed-door meetings with the government last year. The Confederation of All India Traders, representing millions of traditional retailers, argued that the revised rules could be misused by foreign companies and allow them greater control over supply chains.
In 2024, an investigation by India's antitrust authority found that Amazon had violated competition laws by engaging in deep discounting practices and working with preferred sellers. Amazon has denied these allegations.
The government's decision represents a major development in India's e-commerce export framework, opening new opportunities for global market access while continuing to face scrutiny from domestic retailers concerned about competition and supply chain influence.
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