By Arpan Chaturvedi

NEW DELHI (Reuters) -Groups backing millions of small Indian retailers have urged the government to shun Amazon’s request to ease strict foreign investment rules for exports, a letter shows, as opposition to a contentious policy change grows.

India currently prohibits companies like Amazon and Walmart from stocking and selling goods directly to consumers, allowing them only to operate a shopping website to connect buyers and sellers for a fee. The restrictions apply to exports, too.

Amazon has been lobbying the Indian government to ease those rules to exempt exports, which would allow Amazon India to buy goods from sellers itself to sell to international customers, Reuters reported last month.

The policy restrictions that Amazon and Walmart face have for years been

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