Union Commerce Minister Piyush Goyal speaks at a launch event of a report on the net impact of e-commerce on employment and consumer welfare
Union Minister of Commerce Piyush Goyal On Wednesday, Goyal expressed concern over the rapid expansion of e-commerce in India, calling it a “cause for concern” rather than a point of pride. Speaking at an event for the launch of a report on the net impact of e-commerce on employment and consumer welfare, Goyal stressed the potential social disruptions that could arise if the sector’s growth is not managed carefully, according to media reports.
Goyal acknowledged the role that e-commerce plays in the Indian economy, but stressed the need for a more organised approach to its expansion. He questioned the impact of predatory pricing strategies employed by some e-commerce giants, such as Amazon, which he said could hurt the overall economy rather than help it.
“When Amazon says it is going to invest $1 billion in India and celebrates it, we forget the underlying story that that $1 billion is not going to go into any big services or investments to support the Indian economy,” Goyal said. He noted that such investments might be more about covering operational losses than actually benefiting the country’s economy.
The minister also expressed concern about the decline of small retailers, particularly in the face of competition from large e-commerce platforms and retailers. He pointed to the disappearance of many small mobile phone shops and questioned whether only big brands such as Apple should dominate the market.
Goyal warned against causing “massive social disruption” by allowing e-commerce to capture a significant share of the market without considering its broader impacts. He stressed the importance of ensuring that technology and innovation benefit a broader section of society and do not lead to the erosion of small businesses.
While the minister clarified that he is not against the e-commerce industry, he called for a careful review of its role in India’s economy and advocated for citizen-centric and socially responsible growth. He urged stakeholders to consider the long-term implications of the expansion of e-commerce and ensure that it happens in an orderly and balanced manner.
First published: August 21, 2024 | 14:52 IS
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