NEW DELHI, 21st August, 2024 (WAM) -- India's Commerce and Industry Minister Piyush Goyal raised concerns about the functioning of the e-commerce sector that eats into the business of small retailers by giving heavy discounts on products.
Asian News International (ANI) quoted Goyal as saying on Wednesday that e-commerce players employed predatory pricing and not giving a level playing field to small retailers.
Speaking at an event for launching a report titled ‘Net Impact of e-Commerce on Employment and Consumer Welfare in India’, Goyal said, e-commerce players are making things so much cheaper. “E-commerce is eating into the small retailers, high value, high margin products, which are the only products through which it survives.”
He said that the growth of e-commerce does not attack every corner of the retail store, but it is a matter of concern.
"Are we going to cause huge social disruption with this massive growth of e-commerce? And I don't see it as a matter of pride that half our market could become a part of the e-commerce network," the Minister said, adding that he does not deny the role of the e-commerce sector.
He further emphasised the need to make the sector more organised. The minister said predatory pricing and huge discounts by big e-commerce players will create a disruption in the businesses of India's 100 million small retailers and the government is concerned about that.