Goyal did not agree with the report, saying that there's a need for policies that protect local businesses and ensure fair competition in e-commerce | (Photo: PTI)2 min read Last Updated Aug 21 2024 | 1:45 PM ISTGiant e-commerce firms predatory pricing is a matter of concern and may lead to employment loss in traditional retail, said Commerce and Industry Minister Piyush Goyal on Wednesday.He accepted e-commerce is crucial but emphasised there is a need to think cautiously about what role it can play in a more organised way, considering the benefits and drawbacks.Are predatory pricing policies good for the country? Goyal said at the launch of a report called 'Net Impact of E-Commerce on Employment and Consumer Welfare in India'.He criticised the investment strategies of large e-commerce companies, suggesting their losses are offset by significant payments to professionals and top lawyers.
When Amazon says we are going to invest a billion dollars in India, we all celebrate (but) we forget the underlying story that billion dollars is not coming in for any great service or any great investment to support the Indian economy.
They made a billion dollars loss in their balance sheet that year.
They have to fill in that loss," he said.And how did that loss get caused? They paid Rs 1,000 crore to professionals.
Unless you're paying all the top lawyers to block them so that nobody can fight a case against themIf you make Rs 6,000 crore loss in one year, does that not smell of predatory pricing to any of you? What did that loss come on? They are up to all the e-commerce platforms.
They are not allowed to do B2C, said Goyal, referring to business to commerce.According to the report by Pahle India Foundation, e-commerce is a key driver in generating employment and online vendors employ 54 per cent more people and almost twice the number of female employees.
It said growth of e-commerce has not come at the cost of traditional retail.
Less than a fifth of the offline vendors reported physical store closure in their neighbourhood since 2020, the year that saw a boom in e-commerce.
Physical retail continues to grow and thrive, it said.Goyal did not agree with the report, saying that there's a need for policies that protect local businesses and ensure fair competition in e-commerce, The government must study the impact of e-commerce on employment and local businesses.First Published: Aug 21 2024 | 1:00 PMIST