India, Sept. 26 -- In an attempt to ease foreign investment rules, the government has reportedly drafted a proposal to allow ecommerce multinationals like Amazon to purchase goods directly from Indian sellers and sell overseas.

Foreign ecommerce companies are so far barred from selling goods directly to consumers - both within and outside the country and can operate only as online marketplaces that connect buyers and sellers for a fee.

The restrictive policy has long been a sticking point between India and the US, with American giants like Amazon lobbying the Indian government to relax the export restrictions. The proposed changes, according to a Reuters report, come as India and the US try to iron out differences along the way to a pro...