Trader bodies have been raising concern over violation of foreign direct investment (FDI) norms.
India will celebrate 11.11 with the UC Shopping Festival in association with Paytm, VMate and 9Apps.
It also said there is a need to focus on rural markets as overlooking of non-urban centres may lead to undesirable results.
In January, Walmart told the US government privately that India's new rules were regressive and had the potential to hurt trade ties.
Detailed questionnaires have been sent to Flipkart, Amazon and their response is awaited, said commerce minister Piyush Goyal.
Flipkart did not comment on the investments planned for the new venture.
Paytm will consider getting listed on stock exchanges only after 2021 when the financial services company starts generating cash.
...both Amazon and Flipkart in a clandestine manner refuted the issues raised by us even after showing relevant evidences, said CAIT.
India's telecom sector has witnessed a churn with stiff competition, especially after the entry of Reliance Jio.
Flipkart has added over 50,000 direct jobs across its supply chain, logistics arm and customer support.