Rapid expansion of e-commerce Posing Threat for Small Retailers: Piyush Goyal Expressed Concern

Union Minister Piyush Goyal expressed concern over the rapid expansion of e-commerce in India, labelling it a “matter of concern” rather than an achievement. He cautioned that the growing influence of e-commerce platforms could disrupt the livelihoods of over 100 million brick-and-mortar stores and small retailers across the country.

In a recent discussion, Union Minister Piyush Goyal highlighted the significant growth of e-commerce in India, noting its rise from a 4.7% market share in 2017 to 7.8% in 2022. Goyal emphasized that this represents a 27% annual increase, with projections suggesting that the market could reach a 10.7% share by 2024. He also warned that if this growth trend continues, e-commerce in India is expected to double every four years.

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Impact on Traditional Retail

Goyal shared his concerns about the potential impact on traditional retail, particularly small retailers and local sellers. He pointed out that e-commerce often captures high-margin products crucial for the survival of small businesses. This shift towards e-commerce in high-margin sectors could lead to the decline of small, brick-and-mortar stores that form the backbone of local economies.

Concerns About Predatory Pricing and Market Disruption

He added that while these platforms attract huge investments, their aggressive pricing strategies often offset significant losses. Goyal questioned the fairness of such practices over time, suggesting that these tactics are not part of fair competition and could disrupt market equilibrium.

The Future of E-Commerce and Traditional Retail

As India continues to experience rapid e-commerce growth, the future of traditional retail remains uncertain. Small businesses and local sellers are at a crossroads, facing increasing competition from online platforms while navigating a changing retail landscape. To address these challenges, stakeholders including government bodies, business leaders, and policymakers will need to work together to find solutions that balance innovation with fairness.

Amazon’s unfair market dominance

Praveen Khandelwal, MP from Chandni Chowk and Secretary General of the Confederation of All India Traders (CAIT), thanked the minister for exposing the tactics adopted by foreign companies to capture the Indian market. He criticized global giants like Amazon for investing heavily in establishing market dominance through predatory pricing, funding losses, and maintaining their own inventory, all of which, he argued, violate the Government of India’s FDI policy.

As the debate over the impact of e-commerce on traditional retail intensifies, it remains to be seen how policymakers and industry leaders will respond. The future of retail in India will be determined by the actions taken now.

Live with humility and righteousness

The rise of e-commerce and technological advancement should not come at the cost of the livelihoods of millions of small retailers who play a vital role in our local economies. Just as Kabir Ji taught us to live with humility and righteousness, we must ensure that the pursuit of growth does not trample the vulnerable.

For those interested in exploring the profound wisdom of Kabir Sahib and understanding how these teachings can be applied to modern challenges, there is a true Saint who has unravelled the mysteries of life.

Visit Jagatguru Sant Rampal Ji Maharaj’s website to discover insights that can guide us toward a more balanced and fulfilling life.