(Bloomberg) -- India’s trade minister Piyush Goyal on Wednesday said the growth of big e-commerce companies such as Amazon.com Inc. risks putting about 100 million small mom-and-pop stores in the country out of business.
“I don’t see it as a matter of pride that half our market could possibly become part of the e-commerce network 10 years from now,” Goyal said. “It is a matter of concern.”
Goyal, who was speaking at an e-commerce event in New Delhi, has in the past too accused giants such as Amazon and Walmart Inc. of flouting local rules and indulging in predatory pricing practices. Prime Minister Narendra Modi’s ruling Bharatiya Janata Party enjoys widespread support from small and medium business owners.
“We have to think very carefully and cautiously” about the role of e-commerce “and how can that be done in a more organized fashion,” Goyal said, adding that online commerce is here to stay. “Is predatory pricing good for the country?”
India is a bright spot for Amazon’s e-commerce, cloud and video streaming businesses as it scouts for growth outside its home market of the US. But its India’s push has encountered fierce competition from Walmart-owned Flipkart and other local rivals, as well as antitrust challenges.
Amazon didn’t respond to a request for comment but it has repeatedly denied it’s undercutting local business. The Seattle, Washington-headquartered company has previously announced plans to bring 10 million Indian small and medium businesses online, create about 2 million direct and indirect jobs and help the South Asian country achieve $20 billion in cumulative exports by next year. Its also said it will invest an additional $15 billion in India by 2030.
--With assistance from Sankalp Phartiyal.
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