India is an important growth market for the American e-commerce giant: Amazon has already poured roughly $5 billion into that market and is reported to have plans for an additional $2 billion investment in Amazon India. It has also been making inroads into the country's offline space, buying equity stakes of local retail chains such as More and Shoppers Stop.
India's e-commerce market will exceed $100 billion by 2022, with online retail and travel holding more than 90 percent share, according to global consultancy PwC.
Shares of Amazon fell on Friday as India's new e-commerce regulation came into effect, in part due to the company expressing concerns about "much uncertainty" in the country.
An Amazon India spokesperson said in a Tuesday statement to CNBC, "While we remain committed to complying with all laws and regulations, we will continue to look to engage with the government to seek clarifications that help us decide our future course of action as well as minimize the impact on our customers and sellers."
Now, Amazon is scrambling to reconfigure its business model, key partnerships and ownership structure to become compliant in India. Here's what you need to know about recent changes to the e-commerce market in the world's fastest growing major economy: