21 august 2024 : Minister of Commerce and Industry Piyush Goyal expressed his apprehensions regarding predatory pricing practices by e-commerce platforms and the potential adverse effects on employment within the traditional retail sector. While recognizing the significance of e-commerce, he emphasized the necessity to approach its integration in a more structured manner. During the unveiling of the report titled “Net Impact of E-Commerce on Employment and Consumer Welfare in India,” he posed the question, “Are predatory pricing policies beneficial for the nation?”
He remarked, “When Amazon announces a billion-dollar investment in India, it is met with enthusiasm, yet we often overlook the underlying implications—that investment is not directed towards enhancing services or bolstering the Indian economy. It reflects a billion-dollar loss on their financial statements for that year, which they must recuperate.”
He further stated, “What led to that loss? They allocated ₹1,000 crore to legal professionals. Unless substantial fees are paid to top lawyers to prevent any legal challenges… If a loss of ₹6,000 crore is recorded in a single year, does that not raise concerns about predatory pricing? What is the source of that loss? They are engaged across various e-commerce platforms, yet they are restricted from B2C operations.”
According to the report released by Pahle India Foundation, e-commerce serves as a significant catalyst for job creation, with online vendors employing 54 percent more individuals and nearly double the number of female workers. Piyush Goyal underscored the importance of formulating policies that safeguard local enterprises and promote equitable competition within the e-commerce landscape.
