Small Retailers Rally Against Amazon's Policy Change Push
Indian retailer groups oppose Amazon's efforts to relax foreign investment rules for exports, which could harm small businesses. Amazon seeks to directly buy and export goods, but faces opposition due to potential predatory pricing. The government is contemplating amendments, with no decision yet made.
Small Indian retailer groups are urging the government to decline Amazon's request to relax strict foreign investment rules for exports. This opposition highlights growing tensions over Amazon's interest in bypassing regulations to directly procure goods for export.
India's current policy restricts companies like Amazon and Walmart from directly selling goods to domestic or international customers, allowing them only to operate as platforms. Amazon has been lobbying to exempt exports from these rules, a move that critics argue could threaten smaller businesses due to Amazon's significant financial resources.
More than 30 groups representing millions have voiced concern, suggesting Amazon's direct procurement for exports would enable it to employ predatory pricing tactics. The debate comes amid ongoing trade discussions between New Delhi and Washington. While Amazon argues that easing rules could aid small sellers, the Indian government's decision remains pending.
(With inputs from agencies.)
Google News