Amazon Seeks FDI Relaxation to Expand Ecommerce Exports from India

By siliconindia | Monday, 25 August 2025, 05:59 Hrs

Amazon has asked India’s commerce ministry to relax FDI rules for exports.
The company seeks permission to directly source products from Indian sellers.
Retailer groups oppose the move, citing risks to small traders.

Amazon has requested the Indian government to relax Foreign Direct Investment (FDI) rules to support its e-commerce export operations. The company executives met with officials from the commerce ministry on August 21 to push for an exemption from current FDI restrictions that prevent online marketplaces from directly stocking and selling goods.

Under India’s present FDI regulations, platforms like Amazon and Flipkart are only allowed to act as intermediaries between buyers and sellers. They cannot directly sell or ship products either in domestic markets or for export. Amazon is seeking an exception for exports, allowing it to source goods directly from Indian sellers and ship them to global buyers.

The proposal is part of Amazon’s larger strategy to make e-commerce exports a core focus in India. The company claims it has already enabled $13 billion worth of exports from India since 2015 and plans to increase this number to $80 billion by 2030. Earlier this year, Amazon renewed its partnership with the Directorate General of Foreign Trade (DGFT) to help more Indian sellers access global markets.

However, Amazon’s request faced opposition from three major Indian retailer associations during the same meeting. These groups argue that easing rules for global e-commerce giants could harm small domestic traders, who they claim are already struggling due to deep discounting and biased support for select large sellers.

Also Read: Amazon Unveils Rs 2,000 Crore Investment Plan to Power India's Next-Gen Operations

The Indian government has set a target of reaching $200–300 billion in e-commerce exports by 2030. Agencies like DGFT, the Reserve Bank of India (RBI), and the commerce ministry are working on a new regulatory framework to support this goal. Whether Amazon’s request fits into that framework remains to be seen.