NEW DELHI: A day after he hit out at e-commerce platforms over their predatory pricing practices, Minister of Commerce and Industries Piyush Goyal on Thursday clarified that the government is not against e-commerce and only wants fair competition between online and offline businesses.
The minister in an event said that e-commerce has several benefits - it has the benefit of convenience and speed, and it is giving you comforts in your home.
“What the country only desires is fair play, honesty to customers and suppliers of goods and services, and to ensure that our people have a fair chance of competing against online businesses,” said the minister.
Goyal created a controversy on Wednesday when he lambasted US-based online retailer Amazon for its anti-competitive practices. He had said that Amazon investing a billion dollars in India is not a cause for celebration as it is only making good for Rs 6,000 crore losses it made by selling prices at lower prices.
Meanwhile, some associations have come in support of e-commerce platforms against Goyal’s tirade.
Vinod Kumar, president of the Forum for Internet Retailers, Sellers & Traders, India (FIRST India), says: “SMEs can make entire India and the world as a customer base leveraging e-commerce platforms without having to invest in distribution channels. Our members have benefited immensely from e-commerce and digital commerce.”
He added that the growth of e-commerce is helping the growth of the formal economy in the country. According to him, without Amazon, Flipkart, Zomato or Swiggy, many members would have struggled to do business, let alone grow it.
Meanwhile, Shriram Subramanian, Founder & MD, InGovern Research Services Pvt. Ltd, says that e-commerce platforms have been the bedrock for the growth of small and medium businesses.
“The numbers suggest that Amazon and Flipkart have done far more for Indian businesses than anyone else. In my view, it is incorrect to pull down e-commerce in India and suggest retail as the right model for consumers here,” he said.