Amazon is a company that has been doing a lot of thinking for the new FDI rules in India. It has been trying to get around it or just pass through it with following all the regulations given. That being said, the company has been following a single route for success from a long time and in India, the new FDI rule made them change their route which has caused a lot of ruckus amongst the execs in India.
In February, it was reported by some of the trusted news outlets that Amazon India had incurred $45 billion in losses. There was a hiatus about this news and people were talking and posting relentlessly on social media as well. There were a lot of things the company needed to do to comply with the heavy regulations the FDI policy brought along.
Three months after their statement saying that the new FDI policy will deeply hurt Amazon and the Indian customers, Amazon has taken a sharp U-turn saying that the FDI policy did not hurt them at all. It is not as bad as it looks and they have complied with it pretty well. Maybe it was like the dog which barks from afar but is friendly when you meet it.
Amazon’s Chief Financial Officer also talked about this and he said that during the initial days of complying with the regulations it was extremely hard. There were many hard days and the losses did pile on for some days but when one looks at the overall quarter, it has had minimal effects on the company.
Brian Olsavsky, the Chief Financial Officer said, “We did make some changes to our structure to stay in compliance with all regulations. There were a few days of downtime for some of our selection. But for the full quarter, the impact was minimal. We’re in compliance and very, very happy with the progress of the business in India.”
That being said, the company has been doing extremely well ever since. It has shown a profit of about $3.6 billion on the sales of $59.7 billion. The international business of Amazon also grew by 9% to a staggering $16 billion. The most important part of all these numbers is that the losses of the company, internationally, went down from $622 million to $90 million. This is a great victory as well.