Growth of e-commerce in India 'matter of concern, nothing to be proud of', says Piyush Goyal
Piyush Goyal on Wednesday expressed concerns over the rapid expansion of e-commerce firms in India, describing it as a «matter of concern» rather than an achievement.
Speaking at an event for the launch of a report on the 'Net Impact of E-Commerce on Employment and Consumer Welfare in India', Goyal raised questions about the potential social disruption that might follow this surge.
«Are we going to cause huge, social disruption with this massive growth of e-commerce? I don't see it as a matter of pride that half our market may become part of the e-commerce network 10 years from now; it is a matter of concern,” Goyal remarked.
Goyal emphasized the need for a thoughtful approach to the role of e-commerce in India. «E-commerce has a role, but we have to think carefully about what that role is and how it can be more organized,» Goyal stated. He also raised concerns about the pricing strategies used by some e-commerce firms, questioning, «Is predatory pricing policy good for the country?»
«E-commerce is eating into the small retailers' high value, high margin products which are the only products by which they survive,» Goyal added.
The minister made it clear that while he acknowledges the permanence of the e-commerce industry, it is crucial to assess its broader impact. He pointed out that the industry does not dominate every aspect of retail but emphasized that only a small portion of the population currently uses online platforms to purchase essential items like food and groceries.
In the race for market share,
