Amazon has done no favour to India: Piyush Goyal

The union commerce and industry minister wondered if the company was investing $ 1 billion in India for deficit financing to compensate for its 'questionable' losses

Editorials

ISRO Too Competent To Need Society’s Immature Reaction

Three days have passed since Lander Vikram strayed from the planned trajectory; the nation is still trying to motivate ISRO scientists as if they were in a state of despondency, notwithstanding their 95% success in meeting the Chandrayaan-2 mission objectives

Pandits’ Return Will Be Real Normalcy In Kashmir

The opposition and media would have the world believe that not persecuted Pandits getting their home and hearth back but terrorists conveniently using internet, bombs and bullets would qualify as normalcy in the Valley

Muslim Women Act Proves Modi Can If He Wants To

The passing of the Muslim Women Bill in the Rajya Sabha, which has established BJP's floor management prowess, must wake Hindus and the middle class up to pressure PM Narendra Modi to legislate what they have been demanding for ages
- Advertisement -

Union Commerce and Industry Minister Piyush Goyal said on Thursday that Amazon had not done any favour by investing in India. He questioned if the company providing an online trading platform was not following the market policy and spoiling the prices of competitors, how it could incur such a huge loss.

Goyal said this a day after Jeff Bezos, the world’s wealthiest man, announced a billion-dollar investment in India. The minister said that e-commerce companies would have to comply with Indian regulations in letter and spirit. They should not attempt to enter the Indian multi-brand retail sector through the backdoor by finding holes in the law.

Bezos arrived in India yesterday while Prime Minister Narendra Modi, who is known to treat international guests with warmth except in the case of Prime Minister of Canada Justin Trudeau, has decided not to meet the billionaire because the newspaper the businessman runs, The Washington Post, is infamous for rhetoric that hurts Indian interests.

Related

The commerce minister has not given Bezos an appointment either. India does not allow foreign companies to invest more than 49% in multi-brand retail. The government has not yet allowed any foreign retail company to do business in this area.

In a global dialogue conference “Raisina Dialogue” in Delhi, Goyal said, “Amazon can invest $ 1 billion but if they are losing a billion dollars, they will be arranging for those billion dollars. That is why it is not that they are doing India a favour by investing $ 1 billion.”

Amazon[dot]com has announced this investment to help small and medium enterprises export their products online. The minister wondered how e-commerce companies, which were providing an IT platform to buyers and sellers, could suffer big losses. He said the matter needed to be looked into.

Goyal said, “They have been investing money in warehouses and other activities in the last few years. It is welcome and nice. But (the question is) are they investing money to finance the deficit at the expense of the e-commerce market place model?”

The minister said that in a fair market model, the business was worth $ 10 billion and if the company is losing billions of dollars, it certainly raises the question as to where the losses come from. Goyal said that when the online company was not providing goods at a price that could spoil the market, how it could incur such a huge loss. He said, “These are the questions that need answers. I am confident that the authority that is looking at it will respond to it and I am sure e-commerce companies will also have their side.”

The Competition Commission of India recently opposed e-commerce companies Flipkart and Amazon and ordered an inquiry to investigate the mess, including alliances with subsidiaries or other preferential vendors, to offer big discounts.

Pro-market economists wonder why the government does not permit Indian companies to source products from subsidiaries too and compete with foreign online retailers like Flipkart and Amazon rather than come under pressure of lobbies of local traders to ward off competition at the expense of the consumer.

Related

Goyal said that India allowed foreign investment in the e-commerce market. In this model, buyers and sellers are free to trade, but these e-commerce companies cannot store their own goods or fix prices, he said. “I think as long as these regulations are followed, we welcome e-commerce companies in India,” the minister concluded.

- Advertisement -

More reports

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

- Advertisement -

Articles

BJP Could Not Have Won With This Approach To Delhi

From not paying attention to the corruption-ridden MCD to aloof leaders whose houses witnessed no activity during campaigns, BJP went all wrong in the Delhi assembly election

AAP Win In Delhi Was Foregone Conclusion: 5 Reasons

The five factors that contributed to the AAP victory have been arranged in the decreasing order of relevance; the first three will remain constant for a few more Delhi elections

Rahul Gandhi’s Intemperance Costs INC Dear Again

After forfeiting the Delhi poll with his 'danda mārenge' comment, the politician who has pledged never to grow up must put both his feet permanently in the mouth to gag himself

Bloomberg For US President? Why Not?

Mayor Michael Bloomberg can be an attractive candidate to a lot of voters – those who are concerned about the leftward, idiosyncratic, wokey, “let us butt into every other country’s internal policy initiatives” overreach of the Democrats

‘सभी संगठनों से मुक्त’ जामिया शूटर ‘बजरंग दल’ का कैसे हो गया?

जामिया क्षेत्र में गोली चलाने से पहले 'रामभक्त गोपाल' ने अपनी प्रोफ़ाइल बदली और धड़ल्ले से दक्षिणपंथी संगठनों व एक पार्टी के नाम दर्ज कर दिए

30 साल से ज़िन्दगी तलाशते कश्मीरी हिन्दू

मस्जिदों से हिन्दुओ के सफाए के पैगाम आए; एक के बाद एक दिल दहलाने वाली खबर आई; जुमे की नमाज़ के बाद सड़को पर जो भी हिन्दू दिखा, काट दिया गया

For fearless journalism

%d bloggers like this: