{{India could allow global online retailers such as Amazon.com Inc to sell their own products as early as next month, removing restrictions that could boost competition in one of the world’s biggest, and most price-sensitive, retail markets.}}
The decision, which is likely to be announced in 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 is also likely to 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.
Four people privy to discussions within the government told Reuters that officials believed a more robust online retail sector would spur manufacturing and consumption, helping revive an economy that has been growing at below 5% for two years, the longest period of sub-par expansion since the late 1980s.
“Most stakeholders support FDI (foreign direct investment),” said a senior government official, referring to e-commerce. “We have pitched for opening it up completely.”
Industry surveys say e-commerce could contribute as much as 4% to India’s economy by 2020.
The official, like the people who spoke to media, declined to be named as the matter was confidential.
When asked about the decision, a spokesman for India’s commerce and industry ministry declined to comment.
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