Govt likely to tweak foreign investment rules for exports

The government has drafted a proposal to ease foreign investment rules to allow e-commerce companies like Amazon to buy products directly from Indian sellers and then sell them to overseas customers. Less than 10% of small Indian businesses selling online domestically participate in global e-commerce exports, constrained by complex documentation and compliance requirements, as per a 10-page proposal from the Directorate General of Foreign Trade (DGFT). The proposal envisages a third-party export facilitation model, wherein a dedicated export entity linked to e-commerce platforms would manage compliance. India currently prohibits foreign e-commerce companies from selling goods directly to consumers either at home or abroad, allowing them only to operate a marketplace to connect buyers and sellers for a fee. The policy has been a sore point between New Delhi and Washington for years, and Amazon has been lobbying the Indian government to ease the rules in the case of exports, as per a report.

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