Keen to capitalize on India’s growing e-commerce sector.
By Deepak Chitnis
WASHINGTON, DC: Online retailer Amazon is ramping up its lobbying efforts in the US, in order to encourage Foreign Direct Investments (FDI) into India as it continues to expand its efforts in the Indian market.
According to lobbying disclosure reports filed by the US Senate, Amazon lobbied heavily during the months of January-March 2014 in support of the US contributing more FDI in India. This means that it’s the second quarter in the row in which Amazon has done this, a sure sign that the company is committed to capitalizing on the growing Indian e-commerce sector.
During the entirety of last year, Amazon spent $3.45 million in pro-India FDI lobbying efforts in the US, and is currently on pace to at least match that total this year, if not exceed it. Additionally, the company has given every indication that it will continue to push for further US investment in India.
Online shopping in India has seen rapid expansion over the past few years, as Internet adoption has increased significantly and mobile technology adoption continues to rise. Last year, Amazon launched amazon.in, a version its online marketplace dedicated solely to India, in a manner similar to what the company has in other countries like the UK and Australia.
Specific agencies that Amazon has been speaking with are the US Senate and House of Representatives, Office of the Trade Representative, and the Departments of Commerce and State. Other issues that have apparently come up in lobbying discussions initiated by Amazon include free-trade agreements, aerial vehicles (a proposition Amazon launched last year for drone deliveries), online sales tax, and high-skilled immigration, which has been a hot-button issue for a year now between the US and India.
The reports also indicate that retail giant Walmart has done the reverse of Amazon, and has been progressively curtailing its lobbying efforts with regards to India over the last two quarters. Walmart had been aggressively lobbying in much the same way Amazon currently is, but has scaled back its efforts due to various issues within India, such as bureaucratic red tape and other such hindrances.