The statement by Trade Minister Piyush Goyal that investments by Amazon India is only to fill balance sheet losses, reflects the functioning of such foreign companies who are treating the country as a banana republic, Praveen Khandelwal, the Secretary General of the Confederation of All India Traders (CAIT) said on August 21.
While complimenting the minister for underlining the methodology of foreign companies to capture Indian market by creating unhealthy and uneven competition, Khandelwal, who is also an MP from Chandni Chowk, called for greater scrutiny on foreign investments to ensure they contribute positively to the local economy and do not merely serve to sustain operations that are not yet profitable.
“This perspective underscores the importance of balancing foreign direct investment (FDI) with sustainable business practices that benefit the domestic market,” Khandelwal said.
Earlier on Wednesday, Goyal said that Amazon’s plans to invest an additional $15 billion in India by 2030, which increases the e-commerce giant’s total investment in the country to $26 billion, only comes to fill the company’s losses and is not a reason to celebrate.
He further remarked that Amazon incurred huge losses because it follows predatory pricing.
“If you make Rs 6,000 crore loss in one year, doesn't that not smell like predatory pricing to any of you? What did that loss come on? They are, after all, an e-commerce platform, they are not allowed to do B2C, legally. The e-commerce platform legally, cannot do business to consumer (B2C),” Goyal said.
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