News > How the Likes of Amazon have Circumvented India’s FDI Laws

How the Likes of Amazon have Circumvented India’s FDI Laws

The FDI Policy of 2015 allowed 100 per cent FDI in B2B e-commerce and not in B2C e-commerce. That meant entities like Amazon could not sell directly to the retail consumer. Therefore, they built complex structures to get around the law.

One way was establishing B2B companies which were the recipients of large foreign investments from the likes of Amazon. In turn, these B2B companies were sellers on the online retail platform operated by Amazon.