Amazon argued that COVID-19 had already hit small businesses and the proposed rules will have a huge impact on its sellers, arguing that some clauses were already covered by existing law, two of the sources said. A Reliance executive agreed that the proposed rules would boost consumer confidence, but added that some clauses needed clarification. The rules were announced last month amid growing complaints from India's brick-and-mortar retailers that Amazon and Flipkart bypass foreign investment law using complex business strcutures. A Reuters investigation https://www.reuters.com/investigates/special-report/amazon-india-operation in February cited Amazon documents that showed it gave preferential treatment to a small number of its sellers and bypassed foreign investment rules. The government will soon issue certain clarifications on the foreign investment rules, Indian commerce minister Piyush Goyal told reporters on Friday.

Source: Mint July 03, 2021 15:00 UTC