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The GREAT Amazon’s Kindle ebooks reader are the most popular handheld digital reading devices in the world, and with the company itself is an unrivalled e-commerce giant in this planet. India’s market potential with a growing number of consumers with a  appetite for an technology improvement and IT products development meant, it was only a matter of time before the  great Amazon establish the presence in India  where earlierly  in this year. Junglee.com and the Amazon Kindle Store were ushered between in. But those initiatives might face the full  form of brunt of India’s government policy shortly mean while, even resulting it in shutdown of the Amazon’s operations in India launch.

According to a report in Live Mint.com, the Indian government’s policy on FDI in a retail has been a section that forbids foreign retailers (like Amazon.com) to engage in any of sort of online e-commerce activity. The new governments regulations  speaks about the restricts of foreign retailers to operate through the bricks & mortar stores only, 
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The Indian government has also made it has mandatory for an foreign retail companies like Amazon who want to officially expand their business operations in the country to source 30 percent of its goods and services where locally for their first five years of operations in India.

This potentially mean that  the websites like Junglee.com, an online shopping service powered by Amazon and launched in the month of February this year, may shut down soon, if the current status of India’s FDI in single-retail and multi-branding retail policy prevails here. CHEAP DOMAIN

If that wasnnt enough, the  Amazon Kindle Store in India, launched late last month and with a physically retailed tie-up with Company may also face the stickcase under the government’s new FDI norms and terms avail.

That could be a major setback  that the Amazon’s steady steps toward to  expanding its operations in full form in the country. While there’s no doubt that e-commerce in India has been steadily on the rise and shopping in the future place if projected to be predominantly online form, the government’s move on FDI sends mixed signals to the foreign companies planning them to set up shop or take their existing operations in the country to its next level.


All this, of course, is bad news for the consumer. Do you guys agree? What are your thoughts?


Corrigendum: It was erroneously stated that Amazon has a physical retail tie-up with Croma. According to a spokesperson, Croma only sources products from Amazon, and don't have any other tie-up with Amazon.

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