New Delhi:  India is preparing to ease foreign investment rules for e-commerce exports in a move that could benefit global players such as Amazon. According to draft proposals under review, foreign-owned online platforms may soon be allowed to directly purchase goods from Indian sellers for overseas customers, a shift from the current policy that restricts them to acting only as marketplaces.

The proposed changes would apply exclusively to exports and not to domestic sales, where restrictions would remain in place. A dedicated export entity linked to such platforms would manage compliance and documentation, ensuring that goods are sold abroad under strict regulatory oversight. The draft also outlines tough penalties for violations, including fines and possible criminal action.

Supporters of the plan argue that the reform could simplify the export process for small and medium enterprises, which currently face complex compliance and logistics hurdles. Less than 10 percent of Indian online sellers participate in cross-border e-commerce, largely due to these barriers. Officials believe the policy could help boost exports and support the government’s “Make in India” strategy.

Amazon has lobbied for such changes, seeking exemptions for export operations, while retailer and farmer groups have urged the government to reject the proposal. Critics fear that giving global companies more control could undermine local businesses and concentrate power in the hands of large foreign platforms. India’s antitrust regulator has previously investigated Amazon for preferential treatment of certain sellers, allegations the company has denied.

The proposal remains at the draft stage and will require cabinet approval before implementation. The government is also working on broader reforms to simplify entry processes for foreign investors, part of efforts to attract global capital and expand India’s role in international trade.