Amazon Retail India Pvt Ltd, a seller of foodstuff, will stop selling on Amazon.in if the government's latest foreign direct investment (FDI) guidelines remain unchanged by February 1, The Economic Times reported.

This would be a blow for the initiative as Amazon was the only foreign retailer to have committed investment — to the tune of $500 million — in the food retail segment, said the report.

In addition, Amazon's plan to buy a stake in Future Retail is likely to be delayed, people familiar with the matter told ET.

The government last month tightened rules for e-commerce companies, barring them from selling products of businesses in which they have a stake and laying down new conditions for sale of goods on their platforms. The rules go into effect on February 1.

A spokesperson from Amazon told the paper that the company was still evaluating the new norms.

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