Amazon's investment in India to make up for its losses; not to support Indian eco: Piyush Goyal
Piyush Goyal on Wednesday questioned Amazon's announcement of USD 1 billion investment in India, saying the US retailer was not doing any great service to the Indian economy but filling up for the losses it had suffered in the country. He said that their huge losses in India «smells of predatory pricing», which is not good for the country as it impacts crores of small retailers.
Launching a report on 'Net Impact of e-commerce on Employment and Consumer Welfare in India' here, the minister lambasted the e-commerce companies, questioning their business model that has been impacting small retailers in the country.
«When Amazon says that we are going to invest a billion dollars in India and we all celebrate, and we forget the underlying story that the billion dollars are not coming in for great service or any great investment to support the Indian economy. They made a billion-dollar loss in their balance sheet that year, they had to fill in that loss.
«And how did that loss get caused, they paid Rs 1,000 crores to professionals. I do not know who these professionals are...I would love to know, which chartered accountants, professionals or lawyers get Rs 1,000 crores unless you are paying all the top lawyers to block them so that nobody can fight a case against you,» the minister said.
Growth of e-commerce through predatory prices is a concern for small retailers: Piyush Goyal
He wondered whether the Rs 6,000 crore loss in one year does not smell of predatory pricing, as they are just an
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