Amazon is shutting down its wholesale distribution business in India, the latest in a series of retreats for the retailer in the key overseas market.

Amazon Distribution is no longer available in stores in Bengaluru, Mysore and Hubli.

These decisions are not taken lightly. A company spokesman said that the programme would be discontinued in a phased manner.

Neighborhood stores in India, as well as pharmacy and department stores, were helped by Amazon Distribution.

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Amazon did not say why it was shutting down the wholesale distribution offering, but the move follows company shutting two other businesses in the country.

Many are speculating that Amazon is scaling down its operations in the South Asian market due to the number of announcements it has made. Several of the company's senior executives have left in the last few months.

Forget winning, can Amazon survive in India?

According to a recent report, Amazon is lagging behind Walmart in India and is struggling to make inroads in smaller Indian cities. The analysts said in a report to clients that the gross merchandise value in the country was between $18 billion to $20 billion.

Reliance Retail is one of the companies that faces competition from Amazon and others. The report said that it has offered a weaker proposition in the country.

One of the last greatgrowth markets is at stake. India, the world's second largest internet market, is expected to double in size to over $130 billion in the next ten years. Amazon has been trying to increase its presence in India with stakes in local firms and partnerships with neighborhood stores.

Future Retail is India's second largest retail chain and the company tried to acquire it. Reliance was accused of fraud in newspaper ads.

Amazon didn't say if it will close any other business lines.