India’s Commerce Minister Piyush Goyal has moved to clarify his earlier statements on e-commerce, aiming to dispel concerns raised by industry stakeholders. While initially expressing worries about the sector’s impact on traditional retailers, Goyal has now asserted that he is not against e-commerce but instead favors a balanced approach that promotes fair trade and protects the interests of all participants.
Goyal’s remarks, delivered on Thursday, emphasized the government’s support for Foreign Direct Investment (FDI) in the e-commerce sector. He reiterated the government’s stance of welcoming FDI, technology, and global expertise while ensuring a level playing field for both online and offline players.
“I am not against e-commerce, but I am for fair trade and ensuring that e-commerce platforms are not used to harm small retailers and domestic industries,” Goyal stated.
The minister’s clarification comes as a significant relief to the e-commerce industry, which had expressed apprehensions about the potential for stricter regulations following his initial comments. The e-commerce sector has witnessed rapid growth in India, with major players like Amazon, Flipkart, and others making substantial investments in the country.
Goyal highlighted the benefits of e-commerce, including convenience, speed, and accessibility, while emphasizing the importance of fairness and transparency in the market. “What the government and the country seek is fairness—honesty towards the customer, honesty towards suppliers of goods and services, and ensuring that others (offline retailers) also have a fair chance to compete with online businesses,” he said.
The minister’s initial remarks had stemmed from concerns expressed in a report titled ‘Assessing the Net Impact of E-Commerce on Employment and Consumer Welfare in India,’ which projected a significant increase in e-commerce’s share of retail sales in the coming years. Goyal had criticized the report’s findings, calling them “lies, damn lies, and statistics,” and expressing his belief that the rapid growth of e-commerce could negatively impact traditional retailers.
However, his subsequent clarification signals a more balanced approach, aimed at promoting a robust and inclusive e-commerce ecosystem that benefits both online and offline businesses. The government’s commitment to supporting FDI in e-commerce is expected to further fuel the sector’s growth and create new opportunities for businesses and consumers alike.
