Amazon Reduces Its Investments In India




The new Indian rules for e-commerce companies could have to do with the fall in investments



E-commerce giant Amazon has invested $ 395 million dollars in its market unit in India this year, which is one-third of what it did in 2018 with $ 1.3 billion, according to local newspaper Economic Times. With only three months to go to the end of the year, it seems likely that this will be the first time since 2012 that Amazon’s annual investment in India has fallen.

Analysts tracing the history of Amazon India have mentioned that over the past seven years, its investments have steadily increased year by year with a phenomenal peak in 2018. This level could be attributed to Amazon’s entry into the food sector in India.


Amazon’s sharp decline in India has attracted the attention of Indian and US lawmakers


The news of Amazon‘s sharp decline in its investments in India has also attracted the attention of Indian and US legislators. During the Indian summit of the World Economic Forum held in New Delhi, Indian trade minister Piyush Goyal and US trade secretary Wilbur Ross had a long debate on this issue.

Ross asked Goyal for the new guidelines for e-commerce in India regarding its foreign direct investment (FDI) rules, which in the past had put a strain on foreign-funded e-tailers.

India, on the other hand, seems to have become a land of conquest for many Chinese investors. From Tencent to Alibaba, up to pass for Xiaomi.


The decision has also created controversy after local institutions and Amazon


“India is very clear on domestic and political compulsions. We welcome all e-commerce companies that want to work in India as agnostic platforms. We do not want to look at structures that fall within the scope of the law, but in a sense to break the spirit of the same. This is the clear position of the government and we have been clear for decades regarding the BJP” Goyal told Ross.

In his response to Goyal, Ross claimed that Amazon would have spent much more in India if it had not experienced a decline in growth due to e-commerce policies. “It is more important to obtain the most efficient form of retail trade. The demand for a country like India must balance those economic benefits for the population as a whole, even going against the special interests of the retail segment or competitors. nationals, “the US trade secretary said.





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