In New Delhi, Union Minister of Commerce and Industry Piyush Goyal expressed concerns regarding the operations of the online retail sector. He stated that significant discounts offered by online businesses are harming small retailers. Goyal accused online trading organizations of imposing unfair pricing practices and not providing equal opportunities to small shopkeepers.
Today, a report was presented on the topic “The Net Impact of Online Business on Employment and Consumer Service in India,” which Goyal attended. He pointed out that while many perceive online shopping as a way to obtain cheaper products, the reality is different. For instance, if a consumer buys a box of five-star chocolates from a store, it costs ₹500, whereas the same product is available online for ₹350. He noted that this disparity is primarily due to the higher profits associated with these products.
Goyal remarked that online businesses are monopolizing high-margin products, which is detrimental to small retailers who rely on such items for better income. However, he clarified that not all online businesses adversely affect all retailers. When questioned about whether the growth of online trade could lead to social unrest, Goyal did not provide a definitive answer but mentioned that a portion of the market could become integrated into online trade in the coming decade, highlighting the undeniable role of the online sector.
He also raised questions regarding Amazon, noting that the company reported a loss of ₹6,000 crore. Amazon claims it is making a $1 billion investment to recover from this loss. Goyal emphasized the importance of scrutinizing the effectiveness of such investments, given that Amazon is facing significant financial challenges.
