Earlier this year, Amazon India and other e-commerce firms had run into trouble due to a new set of regulations that had been introduced by the Indian government. However, the company is no longer taking any chances and is currently engaging regularly with the government, to ensure that the e-commerce policies in the country are stable. Sudden changes in the regulatory environment can destabilize any business and hence, Amazon is now trying to ensure that the regulations in the e-commerce sector remain stable. One of the most senior members of the company’s executive team stated that the company is engaging with the Indian government in this regard.
The issues with the company’s operations in India had been a source of worry for investors for many months now. Amazon’s Chief Financial Officer Brian Olsavsky addressed the issue during a conference call following the company’s second-quarter financial results. He said,
Our engagement with the Indian government makes us optimistic about partnering and collaborating to seek a stable, predictable policy that allows us to continue investing in our technology and infrastructure.
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Amazon stated that the company had made a tremendous effort to grow its business in India for both customers and vendors. While the number of Prime memberships in the country has increased by 100% in the past 18 months, Amazon has also made it easier for Indian vendors to use its marketplace to sell their products worldwide.
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In this regard, it is important to note that Amazon stated that the change in the regulatory structure that was introduced back in February did not have much of an impact on its business in India. However, it is necessary to point out that Amazon India is now gearing up for one of its biggest sales of the year during Diwali. It is one of the biggest festivals in India, and Amazon is working on creating the infrastructure so that its yearly sale bonanza goes off smoothly. The company would not want any regulatory surprises before the big day.
