Union Minister raises concerns over the rapid growth of e-commerce.
Commerce Minister Piyush Goyal on Wednesday expressed apprehension about the swift expansion of the e-commerce sector in India. Speaking at an event in New Delhi, he said while e-commerce has a role, its impact requires careful consideration.
Goyal raised questions about billion-dollar investments by foreign e-tailers. Referring to Amazon’s India expansion, he highlighted the company reported a billion-dollar loss in the investment year. The Minister deemed this concerning and indicative of possible predatory pricing.
He cautioned celebratory views fail to see the implications of such investments. Goyal contended half of India’s retail converting to e-commerce in a decade should spark concern, not pride.
The Minister acknowledged e-commerce is here to stay. However, he warned of potential social disruptions from its explosive growth and impact on small retailers.
Goyal said some pricing strategies followed by e-commerce firms amount to predatory practices, prejudicial to consumers and retailers. He stressed the need for a measured approach to sector oversight.
Concerns were expressed around online retailers targeting high-margin products critical to small store viability. The Minister advocated a policy balancing the e-commerce role and wider economic effects.
