Indian regulators have again put overseas-backed eCommerce majors on watch over compliance with FDI rules, particularly with regard to offering anti-competitive online discounts. Commerce Minister Piyush Goyal is said to have reiterated a commitment to protect local traders and vendors from “predatory behaviour by foreign-funded companies”.

Following the comprehensive re-election of the nationalist BJP and as trade tensions between the US and India ramp up, it can be expected that downward pressure may be applied on high-profile US-backed players in the market, meaning recent volatility in Indian eCommerce should not be expected to dissipate in the short term.

Source: Reuters