Amazon optimistic on stable e-commerce policy from India
NEW DELHI: Amazon is hopeful that the Indian government would release a “stable predictable” e-commerce policy that would allow the retail behemoth keep investing and creating jobs in the country.
The commerce ministry is currently in the process of finalising the national e-commerce policy and multinational firms have raised concerns over certain provisions of the draft policy.
“Our engagement with the Indian government makes us optimistic about partnering and collaborating to seek a stable predicable policy that allow us to continue investing in our technology and infrastructure,” Brian Olsavsky, Senior vice-president and Chief Financial Officer (CFO) at Amazon, said late Thursday.
The draft policy proposes to set up a legal and technological framework for restrictions on cross-border data flow and also laid out conditions for businesses regarding collection or processing of sensitive data locally and storing it abroad – which is a cause for concern among major players in the market.
The new Indian norms on foreign direct investment (FDI), which came into effect on February 1, prohibit e-tailers from selling products of companies in which they have stakes, despite both Amazon and Walmart seeking a six-month delay in their implementation.
As per the new norms, online marketplaces such as Flipkart and Amazon have been barred from selling products of companies where they hold stakes and the government has also banned exclusive marketing arrangements that could influence product prices. These changes have a direct impact on, for instance, the US giant Walmart, which recently acquired a 77 per cent majority stake in the Indian e-retail major Flipkart.
Amazon has been forced to remove an array of products from its India website in order to comply with the new regulations. (IANS)
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