Profits elude Amazon India despite $6.5 billion investment: Bernstein

Faces 'immense competitive pressure' and 'unfavourable regulatory environment', says US research group

Amazon is falling behind its rival Flipkart in India as it faces an unfavourable regulatory environment and challenges in spreading to smaller cities, says a report by US-based research group Bernstein.

India is a prized market for global internet companies, but challenging to unlock.

“Who can forget Jeff Bezos’ 2014 visit standing on top of a colourful lorry announcing a $2-billion investment? But nearly a decade later, Amazon India’s report card is decidedly mixed,” the report says, referring to the global e-commerce giant’s American founder.

India is one of Amazon's biggest overseas markets and also one of its fastest-growing with a best-in-class customer