Union Minister Piyush Goyal
Photo: Times Now
KEY POINTS
- Union Commerce Minister Piyush Goyal on Thursday said the Centre is not against e-commerce platforms.
- His comments came a day after the Union minister expressed concern over the rise of e-commerce in India.
- The Union Minister said online businesses need to be ensured a “fair chance” to compete.
New Delhi: A day after expressing concern over the rise of e-commerce in India, Union Minister of Commerce Piyush Goyal On Thursday, Goyal clarified the government’s stance. Goyal said the Centre is not against the E-commerce platformsHowever, he added, he wants them to be fair and honest. The Union Minister said online businesses must be guaranteed a “fair chance” to compete.
On Wednesday, Goyal expressed concern over the rise of e-commerce in India as he believes it will affect the country’s economy and society in the long run. The Union Minister highlighted the issue of predatory pricing which would eventually drive out all local retail competition from the market.
Goyal, addressing the ‘Net impact of e-commerce on Employment and consumer welfare On Wednesday in India, he cited the example of Amazon to explain his point of view. He stressed how this e-commerce giant is making multi-billion dollar investments in India, but not to support the country’s economy, but to cover its losses.
“When Amazon says we are going to invest a billion dollars in India and we all celebrate, we forget the underlying story that these billion dollars are not going to come for any great services or investments to support the Indian EconomyThat year they had a loss of a billion dollars on their balance sheet and they had to make up for that loss,” Goyal said.
“If you lose Rs 6,000 crore in a year, don’t you think that’s predatory pricing?” Goyal asked, alluding to the possible long-term damage this could cause to small retailers and the market at large.
Goyal also raised concerns about the broader market dynamics, questioning the legality and ethical aspects of e-commerce platforms that conduct direct-to-consumer (B2C) sales despite regulatory restrictions. “E-commerce platforms are not legally allowed to conduct B2C sales, but they continue to do so. Shouldn’t this raise concerns?” he asked, calling for closer scrutiny of these practices.
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