India likely to ease restrictions for foreign online retailers in July

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Mumbai: India could allow global online retailers such as Amazon.com Inc. to sell their own products as early as next month, removing restrictions that have held back competition in one of the world’s biggest, and most price-sensitive, retail markets.

The decision, which is likely to be announced in or alongside the budget, is one of the first tangible signs of economic reform by the business-friendly government of Prime Minister Narendra Modi, who was sworn in 10 days ago.

The move could allow the government to circumvent political opposition to opening up India’s $500 billion retail sector to global retail giants such as Wal-Mart Stores Inc.

Industry surveys say e-commerce could contribute up to 4 percent to India’s economy by 2020 from under one percent now.                                                                                  Reuters