India may allow global online retailers such as Amazon.com to sell their own products as early as July, 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 new government headed by prime minister Narendra Modi.
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 Walmart.
According to Indian government officials, 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.
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