Amazon Wants What Wal-Mart has in India


Bangalore: The U.S. e-commerce giant, Amazon has asked the Indian government to relax its laws on online retail which does not allow Junglee.com – Amazon’s Indian subsidiary to sell directly to its customers.

In 2012 when the Indian government opened up the gates for Foreign Direct Investment (FDI), the prime minister tweeted, "I believe that these steps will help strengthen our growth process and generate employment in these difficult times." This reform allows global firms such as Wal-Mart Stores to hold a majority stake in a local partner and ‘sell directly to consumers’ for the first time but this does not apply to online retailers like Amazon.

Amazon entered the Indian market in 2012 with its Indian wing – Junglee.com. The website currently offers millions of products from Indian and global brands, but buyers have to make their purchases through third-party suppliers, either online or in person. This site operates as a price comparison portal by only directs shoppers to other sites and vendors, instead of selling the products to them directly – allowing the Amazon subsidiary to sidestep government regulation that forbids online retailers from doing direct sales.

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