Mumbai (Maharashtra) [India], August 23 : Two days after Piyush Goyal raised concerns over predatory pricing by big e-commerce companies, the Union Commerce Minister on Friday said India supports technology coming into the country but it should not come at the cost of small retail businesses.
"We support technology coming into the country. We believe every section has a right to promote their business. We welcome the e-commerce for the technology that it brings in for the convenience that it offers for bringing in more modern techniques," Goyal told reporters in Mumbai today.
At the same time, he said that the country has nearly 10 crore small retailers whose livelihood and their family's sustenance depend on their businesses.
"The government has had very specific laws of the land which stipulate that foreign direct investment in e-commerce is permitted only for business-to-business transactions. Sadly, the law has been not entirely followed in letter and spirit and structures to suit have been created which are detrimental to the interest of small traders, small retailers. The large pockets, the deep pockets of these large companies allow them to indulge in predatory pricing. Instances of algorithms which are used to drive consumer choice and preference have come to note not only in India, but across the world," he noted.
The minister raised concerns about the declining retail stores.
"We have seen the disappearance of all the pharmacies and the dominance of a few large chains. I think India can ill afford such problems. And therefore, we believe in equity. We believe in inclusive growth of all sections. E-commerce has an important role to play. So do small retailers," he explained.
He invoked ONDC, Open Network for Digital Commerce, where small businesses can sell their products.
"In this way, through ONDC, we want to give a network to all the small and big companies, so that all the platforms come on it, all the buyers get more consumer choice...," he added.
Consumers must think over it as to whom they want to benefit - small retailers or the big multinationals, he asked. "I think when the consumers buy something, they have to think about whom are they benefitting from it," he said.
Open Network for Digital Commerce (ONDC) is aimed at promoting open source networks for all to exchange goods and services on the internet, and most importantly it is independent of any specific platform.
On Wednesday, Piyush Goyal raised concern about the functioning of the E-commerce sector, saying that E-commerce is eating into the small retailers by giving heavy discounts on products. Goyal in a way charged E-commerce players with predatory pricing and not giving a level playing field to small retailers.
The minister had said the 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.
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