Report notes that the proposal envisages a third-party export facilitation model, wherein the compliance would be managed by a dedicated export entity linked to ecommerce firms
In a possible win for Amazon, the Indian government has drafted a proposal to tweak foreign investment rules. Reuters reported that the new rules are expected to allow ecommerce companies like Amazon to buy products from Indian sellers directly and sell them to overseas customers.
The report noted that India does not allow foreign ecommerce firms to sell goods directly to consumers either at home or overseas. The companies can only operate as a marketplace to connect the buyers and sellers for a fee. Amazon has been consistently lobbying the Centre to ease the rules, the report added
Industry groups backing small brick-and-mortar retailers have demanded the Centre to dismiss the Amazon’s request, as they feel that its financial firepower threatens their business. Reuters noted that less than 10 per cent of small Indian businesses that sell online in India participate in global ecommerce exports. This is attributed to compliance requirements, complex documentation.
The proposal envisages a third-party export facilitation model, wherein the compliance would be managed by a dedicated export entity linked to ecommerce firms. The new rules would only be applicable to exports and any policy violations would result in stiff penalties along with criminal action.
In an earlier development, the Centre will be sourcing data directly from ecommerce platforms, including Amazon and Flipkart, to revamp its benchmark inflation gauge. This is directed towards capturing shifting consumer habits and address concerns that current data is outdated, Reuters reported.
Since the share of online channels in household spending is rising, the move could make the country’s retail inflation data richer by accounting for prices on digital platforms. The report added that countries like the United States and South Korea integrate scanner and online prices into inflation measures.
