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International Business Investment Muddling In India Due to Revised E-commerce Rules

Recent rules passed by the Government in India have disrupted international business investment. Introduction of new rules and regulations will be commencing from 1st February that will reveal hardship for the foreign traders like Walmart. Popular e-commerce companies Flipkart and Amazon have to tolerate circumstances which ban foreign retailers to reach sellers restricting them to sell on a single platform. New rules create difficulties for the e-commerce in dealing with the firms those who possess equity.

Easy access to the Indian e-commerce market by foreign traders was over by the beginning of 2019, as rules restrict foreign investors investing in e-commerce to sell goods if they have an equity interest. Last year in a review regarding e-commerce policy, it pointed at the inference that new policies will shatter the big shots like Amazon and Flipkart.

Flipkart Chief Executive Mr. Kalyan Krishnamurthy has pleaded for a six-month delay in execution of the rules as immediate implying will cause “significant customer disruption”, still Indian government may not attain to change it from the mentioned date. Walmart has a business investment of $16 billion dollars in Flipkart and $5.5 billion dollars were invested in Indian e-commerce platform. According to the Economic Times, the new policies will enforce Amazon and Flipkart to revise their business strategies. The company is right now focusing on working with sellers (for compliance), all rest is on the back burner.

According to the India Briefing, the reason behind the renewal of the policy enhances a fairer competition between retail channels. Discounts provided by retailers, which were possible through the affiliation and trade agreements with global brands, has led Indian domestic traders to grief as it lowered the product demand.

Comparatively the international business investment in Flipkart has seen the largest deal last year. Domestic traders had risen the complaint about it two years back and the government brought it into implementation, small businessmen and traders were running through difficult times. In dilemma, Amazon seeking for an extension of four months for diverting their business strategy and resources having 400,000 sellers and transactions up to thousands in Indian Market.

[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]

Kakoli Roy is in architecture planning and interior design with 12 years of experience including writing on health, architecture and interior design for the last three years. Presently writes the latest cryptocurrency news for OWLT Market.

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