"Matter Of Concern, Nothing To Be Proud Of," Says Piyush Goyal On Ecommerce Growth In India

Expressing concerns over the rapid growth of ecommerce firms in the country, the Union Minister of Commerce and Industry Piyush Goyal has described such expansion as a matter of concern, rather than an achievement. Goyal stated that ecommerce is eating into the small retailers’ high-value, high-margin products which are the only products through which they survive.

“Are we going to cause huge social disruption with this massive growth of ecommerce? I don’t see it as a matter of pride that half our market could possibly become a part of the ecommerce network ten years from now; it’s a matter of concern,” Goyal mentioned.

The minister was speaking at an event for the release of a report on the ‘Net Impact of Ecommerce on Employment and Consumer Welfare in India’ where he advocated for a thoughtful approach to the role of ecommerce in the country.

“I don’t deny that ecommerce has a role but we will have to think very carefully and cautiously about what that role is and how that role can be in a more organised fashion. Are predatory pricing policies good for the country?”

Goyal raised concerns over the potential disruptions that could be caused for the 10 crore small retailers in India due to the growing race for the market share, marked by a 27 per cent growth rate per year. The minister shed light on the predatory pricing policies by ecommerce companies and questioned the excitement regarding Amazon’s billion-dollar investment in India.

“The Amazon says we are going to invest a billion dollars in India and we all celebrate. We forget the underlying story that the billion dollars are not coming in for any great service or any great investment to support the Indian economy. They made a billion-dollar loss in their balance sheet that year and they had to fill in that loss,” Goyal pointed out.

Goyal highlighted the challenges that are faced by the retailers in the country and stated, “How many mobile stores do you now see in the corners and how many were there ten years ago? Where are all those mobile phones? Will only Apple or large retailers sell mobile phones and their accessories?”