Do Countries Benefit much from Resurgence of Amazon-like-Monopoly Giants?

CAIT accuses the US giant of evading FDI policy by investing in Indian companies and lending them discounts and placements.

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Do Countries Benefit much from Resurgence of Amazon-like-Monopoly Giants? THE POLICY TIMES

CAIT urged the commerce and industry ministry to issue a revised Press Note 2 on FDI in e-commerce marketplaces incorporating strict guidelines to curb the arbitrariness of foreign companies.

Amazon faces the brunt by CAIT Secretary General Praveen Khandelwal

CAIT came down heavily on Amazon, calling one of its statements at a meeting organized by the Department for Promotion of Industry and Internal Trade (DPIIT) “extremely ridiculous and hilarious.” Adducing that Amazon had added 1.5 lakh, new traders, to its portal.  “The question is how many of these traders get business from Amazon. It is a well-known fact that more than 80 percent of the total sales on Amazon are made by only about 35 companies, who are close to Amazon, so what is the benefit to the traders of the country,” CAIT Secretary General Praveen Khandelwal said. Replying to this Amazon spokesperson demanded FDI Policy to be stable and predictable for investors as any disruption in business will impact millions of livelihoods and jobs and cast a shadow over MSMEs, startups, and offline stores. According to Khandelwal, foreign investment in companies like Amazon is done to break the rules and laws of the country, and that there is no benefit to the country from this type of foreign investment.

Also Read: Amazon declared that it Keeps Alexa Transcripts You Can’t Delete

An appeal to Commerce Ministry

National Vice Chairman of CAIT Brij Mohan Agrawal and Secretary Sumit Aggarwal demanded a change in the Press Note 2 and creating firm guidelines to curb the arbitrariness of foreign companies.

TPT Policy Advocacy & Recommendations

  • Efforts should be made to clean the e-commerce landscape of India and an era of manipulation, malpractices, and exploitation should be eradicated. The government should probe all issues pertaining to Amazon’s electronic and digital network used for e-commerce transactions. An astringent survey of its investments and return in retail sectors should be executed to chart its blatant violations.
  • Subsequently, a regulatory panel should be set to investigate stakeholders of other e-commerce companies and take action against malpractices. It should monitor and restrict collaborations against the FDI Policy and promote and encourage Indian traders to adopt new modes of widening and strengthening digital business in India.
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Do Countries Benefit much from Resurgence of Amazon-like-Monopoly Giants?
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CAIT accuses the US giant of evading FDI policy by investing in Indian companies and lending them discounts and placements.
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THE POLICY TIMES
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