E-commerce giant Amazon (AMZN) is asking the Indian government to loosen its foreign investment rules so it can buy products directly from Indian sellers and ship them to international customers, according to Reuters. Currently, Indian laws prohibit companies like Amazon or Walmart (WMT) from selling products directly to consumers. Instead, they are only allowed to run marketplaces that connect buyers and sellers. These rules were designed to protect small local retailers and apply to exports, which is what Amazon hopes to change.
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In a meeting with India’s Commerce Ministry, Amazon requested an exemption for exports by saying that it would help sellers simplify customs processes and allow access to global markets. Walmart-owned Flipkart also joined the meeting. However, three trade groups that represent small retailers strongly objected after accusing both companies of harming small businesses by favoring large sellers and offering heavy discounts. These groups have long argued that such practices push smaller shops out of the market.
It is worth noting that the government hasn’t made a decision yet. According to an internal meeting document that was seen by Reuters, any rule change must clearly prevent foreign firms from using the export route to sell directly to Indian consumers. Meanwhile, Amazon says that it has already helped generate $13 billion in Indian exports since 2015 and wants to grow that to $80 billion by 2030. With India’s e-commerce market projected to triple to $345 billion by 2030, companies like Amazon and Flipkart are eager to expand despite local opposition and ongoing trade tensions between the U.S. and India.
What Is the Price Target for AMZN Stock?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Amazon stock based on 45 Buys and one Hold assigned in the past three months. Furthermore, the average AMZN stock price target of $263.93 per share implies 15.3% upside potential from current levels.
