As per a letter which was seen by Reuters, companies like Amazon.com & Walmart are represented by the US a lobby group that encourages India not to constrict again the foreign investment rules for e-commerce companies.

As per the Reuters report this month, India is making an allowance for revising the rules after in the country traders have taken the charges with Amazon's Indian division & Walmart's Flipkart of making such a difficult structure in order to avoid the investment policy.

Any kind of unlawful activity has been denied by the US companies.

Foreign e-commerce players are only allowed by India for operating as a marketplace for connecting the buyers and the sellers but the local traders said that the US giants promote select sellers and offer deep discounts, which hurts business for smaller local retailers.

In the year of 2018, foreign direct investment (FDI) rules to deter foreign companies are changed by India that offers the products from the sellers in which they have a fair play chance.

It was reported that, it is now being considered by the government to tighten those rules again including the sellers in which a foreign e-commerce company will be holding a roundabout risk through its parent, Reuters reported.

“The US-India Business Council (USIBC), part of the US Chamber of Commerce, encouraged the Indian government not to make any more material restrictive changes to e-commerce investment rules” by January 28 letter.

 USIBC said "Any further changes in FDI rules would limit e-commerce firms from leveraging their scale."

India's Department for Promotion of Industry and Internal Trade (DPIIT) was also asked by USIBC to connect with substantive consultation with the firms regarding the regulation of e-commerce.

No, the reply was given on the comment by USIBC and DPI.

It was been reported by Reuters that the government is also taking into account for eliminating the online sales by a seller who, for e.g., purchase the goods from an e-commerce organization’s comprehensive unit, or any of its group firms, and then sell them on the organization's websites.

The rule of 2018 has changed the disturbed relationship b/w India and the US, as Washington said that the guidelines change will be supporting the local e-commerce retailers over the US firms.

On Friday, it was told to Reuters that the prediction of the regular guidelines changes in India have troubled Amazon, which commits $6.5 billion (roughly Rs. 47,389 crores) in investments in India & Walmart that invested $16 billion (roughly Rs. 1,16,651 crores) in Flipkart in the year 2018.

The Letter of USIBC mentioned that "investments require reasonable policy predictability and fair treatment, USIBC is concerned that material changes to the FDI policy create uncertainty and impacts investor confidence, as well as business continuity of existing investments."

Amazon didn’t comment on this letter. Walmart & Flipkart didn’t reply to the requests for comment accordingly.

Last week the story by Reuters was published, a group on behalf of millions of brick-and-mortar retailers in India said it was receiving the government guarantee that guidelines change were approaching.