“The exponential growth of e-commerce companies in the country is a cause for concern rather than something to be proud of. Are we going to create a huge social disruption with this massive growth in e-commerce?” Goyal asked.
Speaking at the launch of a report titled “Net Impact of E-Commerce on Employment and Consumer Welfare in India” on Wednesday, August 21, Goyal questioned the long-term implications of The rise of e-commerce.
Goyal said the growing dominance of e-commerce needs to be monitored carefully. “Don’t take it as a matter of pride that half of our market can become part of the e-commerce network within 10 years,” he said.
India’s $60 billion online retail sector is currently dominated by Flipkart and Amazon, which together control more than 80% of the market share, according to a report by brokerage firm AllianceBernstein.
While acknowledging that the e-commerce industry is “here to stay,” Goyal urged that its role be shaped in an “orderly manner.”
He noted that e-commerce has not yet dominated all aspects of retailing, as a relatively small percentage of the population buys food and grocery products online. However, the minister expressed concern about whether the industry’s aggressive pricing strategies, often seen as predatory, actually benefit the country.
“The country celebrates when you sign as Amazon “They announce investments worth billions, but these do not come to support the economy,” he said.
Goyal also questioned whether the future of mobile phone sales will be limited to big players like Apple and large retail chains.
The minister stressed that India’s 100 million small retailers should not be overlooked in the drive to gain a greater share of the e-commerce market.
India has been working on an e-commerce policy since 2018, but this project has been put on the back burner due to many delays.
According to a reportAt a review meeting attended by senior officials in July, it was informally decided that the policy was not an immediate priority to work on.
In 2019, the Ministry of Trade and Industry released a draft national e-commerce policy following extensive discussions with e-commerce players and industry stakeholders.
These discussions, which have been ongoing since 2016, aim to balance the interests of small businesses and large e-commerce platforms. The draft policy seeks to foster a regulatory environment conducive to the growth of the sector, protect domestic entrepreneurs and encourage “Make in India” initiatives.
It also aims to ensure a level playing field for all stakeholders and provide adequate access to data, with the government taking into account feedback from various parties to refine the policy.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.