'Not against e-commerce, only want equal chance...': Piyush Goyal defends fair play after Amazon critique

A day after saying the rapid growth of e-commerce in India was a matter of concern rather than pride at an event, Minister of Commerce and Industry Piyush Goyal on August 22 said that the government is not against e-commerce but wants a “fair chance” for our people. 

“We want to invite FDI. We want to invite technology. We want to have the best of the world... We are not against online at all. We want to invite online and serve you,” he clarified. 

Goyal said that e-commerce has tremendous benefits like benefit of convenience, speed and comfort of deliveries at doorstep. He clarified that the government is not opposed to e-commerce but wants to ensure “fair competition and legal compliance”. 

He stressed the importance of supporting small retailers and ensuring they have an equal chance to compete. “What the government wants is fair play and honesty and ensure our people have a fair chance to compete against such online business,” the minister said. 

Speaking at the release of a report on the ‘Net Impact of E-Commerce on Employment and Consumer Welfare in India’ on August 21, Goyal called attention to Amazon’s business practices, particularly its billion-dollar investments, which he suggested are more about covering losses than contributing to India’s economic growth. 

“When Amazon says we are going to invest a billion dollars in India and we all celebrate, we forget the underlying story that these billion dollars is not coming for any great service or investment to support the Indian economy. They made a billion-dollar loss in their balance sheet that year, and they had to fill in that loss,” Goyal said.  

He linked these losses to predatory pricing, a practice where prices are set so low that it undercuts competitors, driving them out of the market.