Govt proposes tweaks to foreign investment rules for exports in possible win for Amazon

India’s government has drafted a proposal to ease foreign investment rules to allow e-commerce companies like Amazon to buy products directly from Indian sellers and then sell them to overseas customers, a document showed.

India currently prohibits foreign ecommerce companies from selling goods directly to consumers either at home or abroad, allowing them only to operate a marketplace to connect buyers and sellers for a fee.

The policy has been a sore point between New Delhi and Washington for years, and Amazon has been lobbying the Indian government…