Union Commerce Minister Piyush Goyal on Wednesday emphasized the need for a balanced approach to the expansion of e-commerce in India, saying that it should be citizen-centric and supportive of the broader economy.
Speaking at the launch of the Pahle India Foundation’s report on the ‘Net Impact of E-Commerce on Employment and Consumer Welfare in India,’ Goyal cautioned against disrupting the livelihoods of India’s 100 million small retailers as e-commerce companies seek to expand their market share. He highlighted the importance of protecting the nation’s developing economy and supporting those who require affirmative action.
“There’s a large section of our population that still deserves our help,” Goyal said. “When it comes to jobs and opportunities for the future of India, all of us must play our part.”
Expressing concerns over the growing influence of e-commerce on traditional retail sectors, Goyal warned of potential adverse effects on employment. He said that within the next decade, half of India’s market could be integrated into the e-commerce network, a development he described as “a matter of concern.”
Goyal called for a data-driven and dispassionate analysis of e-commerce’s impact, drawing attention to the decline of traditional “mom-and-pop” stores in Western countries like the United States and Europe. He also pointed to Switzerland’s cautious approach to e-commerce as a model worth considering.
“I’m not wishing away e-commerce. It’s here to stay,” Goyal said. “However, we must carefully consider its role and question whether practices like predatory pricing are beneficial for the country.”
He urged the business community and experts to conduct a thorough, scientific evaluation of e-commerce’s impact on local businesses and employment, including sectors like pharmacies and mobile phone repair shops. Goyal stressed the need for careful deliberation to ensure that the growth of e-commerce aligns with the broader needs of the country.