Piyush Goyal flays Amazon, unchecked ecomm
Goyal on Wednesday alleged that Amazon's proposed $1-billion investment in India is to compensate for its huge loss that «smells of predatory pricing,» and of no great service to the economy. He also questioned the impact of ecommerce on crores of small retailers. «Are we going to cause huge social disruption with this massive growth of ecommerce?»
«I don't see it as a matter of pride. It's a matter of concern,» Goyal said.
He was launching a report, 'Net Impact of Ecommerce on Employment and Consumer Welfare in India,' by research thinktank Pahle India Foundation.
The minister raised the possibility that half of India's market could become part of the ecommerce network in the next decade, which is a «matter of concern.» The minister said Europe and the US have seen the consequences of unchecked ecommerce growth. «What has happened to the mom-and-pop stores there? How many do you see surviving?»
«I am not wishing away ecommerce, it is there to stay,» he said, even as he questioned the business model that has been impacting small retailers.
Noting that smaller players in the ecosystem are being compromised, Goyal asked, «How many mobile stores do you see now at the (street) corner? And how many were there 10 years ago? Where are those mobile stores? Will only Apple or the large retails sell mobile phones and their accessories?»
He also said there was no recourse now.
Interestingly, the report Goyal launched argued that the growth of ecommerce has not come at the cost of traditional retail.
Terming the
