India Weighs Easing FDI Rules to Boost E-Commerce Exports, Amazon Stands to Gain

The central government has drafted a proposal for policy shift that could give global e-commerce giants like Amazon more leeway in exports. The draft suggests permitting such companies to directly purchase goods from Indian sellers and then sell across the world, according to a Reuters report.

Currently, foreign e-commerce platforms are not allowed to directly engage in retail, neither in India nor abroad. They can only run as a marketplace to link buyers and sellers in return for a commission. This long-standing policy has been a point of contention in trade talks between New Delhi and Washington, with Amazon repeatedly lobbying for exceptions in the export segment.

The proposal came amid stalled negotiations over a trade policy between India and the US. However, the report stated that several associations representing millions of small offline retailers continue to request the government to reject Amazon’s push. They even warned that the American company’s deep pockets could threaten their businesses.

As per data mentioned in Reuters report, less than 10% of small Indian domestic sellers participate in global e-commerce exports due to “constrained by complex documentation, compliance requirements”. The draft outlines a third-party export facilitation framework, wherein a dedicated export entity linked to e-commerce platforms would manage compliance. 

In December, Amazon helped to generate #13 billion in cumulative exports for sellers from India since 2015. It further plans to increase the number to $80 billion by 2030.

The company has recently reports that Amazon Seller Services Pvt Ltd has narrowed its losses for FY25 to ₹374.3 crore, as per the company's statutory filing. The losses stood at ₹3469.5 crore a year ago. The lower losses came on the back of an 18.6% improvement in operating revenue and enhanced operating leverage.

The revenue from operations rose to ₹30138.6 crore in FY25, up from ₹25,406 crore a year back.

The cash flow from operations increased to ₹4,942 crore, zooming seven times from ₹720 crore in FY24. Notably, ASSPL saw no equity infusion in FY25, compared to an infusion of ₹2,490 crore in FY24. The total expenses were 6% higher year-on-year at ₹30,865.6 crore.

Meanwhile, Amazon Wholesale (India), primarily involved in the wholesale trade of various products, reported its total income for the financial year 2024-25 at about ₹3,019 crore, over 16% fall as compared to the last financial year, according to financial data accessed by business intelligence platform, Tofler.

The company however, trimmed its losses to about ₹221 crore during FY25 from ₹342.4 crore a year ago. Its total expenses for the fiscal year were at ₹ 3,236.9 crore.