New Delhi is considering a major policy shift that could reshape global e-commerce exports from India. A draft proposal suggests that the government may allow foreign players like Amazon to directly buy products from Indian sellers for resale to overseas customers, Reuters reported.

Currently, Indian law bars foreign e-commerce companies from selling goods directly, limiting them to a marketplace model where they act only as intermediaries between buyers and sellers. As per the media report, the Directorate General of Foreign Trade (DGFT), which floated the proposal, argues that the existing restrictions constrain small businesses from accessing global markets. Less than 10% of small sellers engaged in domestic e-commerce also export globally, often hampered by cumbersome documentation and compliance hurdles.

To address this, the draft suggests a third-party export facilitation model. Under this, a dedicated export entity linked to e-commerce platforms would manage compliance and streamline processes, allowing sellers to more easily reach international buyers. The relaxation, however, would strictly apply only to exports, with violations attracting heavy penalties and possible criminal action.

The stakes are high. Amazon claims it has already facilitated $13 billion in exports from Indian sellers since 2015 and has set an ambitious target of $80 billion by 2030, Reuters reported. The company has long lobbied New Delhi for clearer export rules, even as the issue has remained a flashpoint in U.S.-India trade talks.

Yet, resistance is mounting at home. Powerful trader groups representing millions of small shopkeepers have urged the government to block the move, warning that Amazon’s deep pockets and global reach could overwhelm traditional retailers.

The draft proposal, not yet public, will require approval from India’s cabinet before becoming policy.

New Delhi is considering a major policy shift that could reshape global e-commerce exports from India. A draft proposal suggests that the government may allow foreign players like Amazon to directly buy products from Indian sellers for resale to overseas customers, Reuters reported.

Currently, Indian law bars foreign e-commerce companies from selling goods directly, limiting them to a marketplace model where they act only as intermediaries between buyers and sellers. As per the media report, the Directorate General of Foreign Trade (DGFT), which floated the proposal, argues that the existing restrictions constrain small businesses from accessing global markets. Less than 10% of small sellers engaged in domestic e-commerce also export globally, often hampered by cumbersome documentation and compliance hurdles.

To address this, the draft suggests a third-party export facilitation model. Under this, a dedicated export entity linked to e-commerce platforms would manage compliance and streamline processes, allowing sellers to more easily reach international buyers. The relaxation, however, would strictly apply only to exports, with violations attracting heavy penalties and possible criminal action.

The stakes are high. Amazon claims it has already facilitated $13 billion in exports from Indian sellers since 2015 and has set an ambitious target of $80 billion by 2030, Reuters reported. The company has long lobbied New Delhi for clearer export rules, even as the issue has remained a flashpoint in U.S.-India trade talks.

Yet, resistance is mounting at home. Powerful trader groups representing millions of small shopkeepers have urged the government to block the move, warning that Amazon’s deep pockets and global reach could overwhelm traditional retailers.

The draft proposal, not yet public, will require approval from India’s cabinet before becoming policy.