Piyush Goyal Criticizes Amazon's Investment Strategy in India

Commerce and Industry Minister Piyush Goyal questioned Amazon’s investment in India, claiming it fills up for the company's losses and facilitates predatory pricing harmful to small retailers. He highlighted concerns over the disruptive impacts of e-commerce on traditional businesses and emphasized cautious consideration of e-commerce's role in India.

Commerce and Industry Minister Piyush Goyal has questioned Amazon's pledge to invest USD 1 billion in India, arguing that the company's actions are not as beneficial to the Indian economy as they appear. He accused the US retailer of using the funds to compensate for previous losses in the country.

Goyal criticized Amazon's business model, suggesting that it relies on predatory pricing, which significantly harms small retailers. He expressed concerns about the rapid growth of e-commerce in India and its potential to cause substantial social disruption, paralleling issues seen in Western countries.

Furthermore, Goyal raised alarms about the impact of online platforms on traditional businesses, from small retail stores to pharmacies, warning that unchecked e-commerce growth could negatively affect millions of small retailers across the nation.

(With inputs from agencies.)