Need to ensure no disruption for 100 million small retailers in the country
FinTech BizNews Service
Mumbai, August 21, 2024: Union Minister of Commerce and Industry Shri Piyush Goyal said that we must ensure that the growth of e-commerce is citizen centric. While attending the launch of a report on 'Net Impact of E-Commerce on Employment and Consumer Welfare in India' of Pahle India Foundation as the Chief Guest in New Delhi today, the Minister said that the growth of e-commerce must democratize the distribution of benefits amongst the larger section of society.
Shri Goyal said that technology is a means to empower, to innovate and means to meet consumer requirements - sometimes more efficiently. But this growth must be in an orderly fashion, he said, adding that in the race for market share, we must not cause disruption for the 100 million small retailers across the country.
Shri Goyal underscored the importance of protecting India's developing economy and supporting those who still need affirmative action. "There’s a large section out there who still deserves our help. When it comes to jobs and opportunities for the future of India, I think all of us will have to play our part," he said.
Shri Goyal expressed his concerns regarding the growing influence of e-commerce on India's traditional retail sector and its potential impact on employment. The Minister highlighted the possibility that half of India's market could become part of the e-commerce network in the next decade, a development he described as "a matter of concern."
Reflecting on the broader implications of e-commerce, Shri Goyal urged a dispassionate and data-driven analysis of its impact. Drawing comparisons with the Western countries, Shri Goyal noted the decline of traditional "mom and pop" stores in countries like the United States and Europe due to the rise of e-commerce. He pointed out that Switzerland has a cautious approach to e-commerce.
"I’m not wishing away e-commerce. It's here to stay," Shri Goyal emphasized, "but we have to think very carefully and cautiously about its role. Is predatory pricing good for the country?”
The Minister expressed his concern about the impact of e-commerce on local businesses and employment, particularly in sectors like pharmacies and mobile phone repair shops. Concluding his remarks, he urged the business community and experts to carefully study and evaluate the impact of E-commerce in context of needs of the country in a detailed and scientific manner.
