eCommerce Growth In India is Matter of Concern, Said Piyush Goyal

eCommerce industry has witnessed a great expansion in the last few years worldwide and India is also not untouched. However, according to Union eCommerce Minister of India, Piyush Goyal, it is not an achievement but rather a matter of concern. 

The concern was highlighted by him during an event that was organized for the report launch on the ‘Net Impact of E-Commerce on Employment and Consumer Welfare in India’. He believes this eCommerce surge can lead to social disruption. 

Goyal stated, “Are we going to cause huge, social disruption with this massive growth of e-commerce? I don't see it as a matter of pride that half our market may become part of the e-commerce network 10 years from now; it is a matter of concern”.

On the other hand, a must-check data has been highlighted in the report presented during the event. It shows that 15.8 million jobs have been generated by online vendors and 3.5 million women are also on the list. According to the report, about 1.76 million active participations have been witnessed in the eCommerce activity by retail enterprises.

There Can be a Rise in Idlers

A concern further raised by Piyush Goyal due to the eCommerce expansion in India, i.e. it may direct people towards a more sedentary lifestyle. He stated that people find online shopping convenient and this may shove them to stay indoors, resulting in less social interactions. 

A change in youth behaviors was also a concern for him. He said, “Of Course, we’ll end up becoming a country of couch potatoes, watching OTT and having food at home every day”. According to him, humans need to be social, meet friends, and go for outings for their overall development. However, he believes all these activities are at risk of diminishing as more and more people are turning to online shopping and solutions for their needs. 

What’s More?

The statements by Mr. Goyal were not to go against eCommerce – he wants it to stay. However, he wants a thoughtful approach should be followed for the role of the eCommerce sector in India. He raised concerns and questioned, “Is predatory pricing policy good for the country?” on the pricing strategies followed by some firms. 

“E-commerce is eating into the small retailers' high value, high margin products which are the only products by which they survive”, he further added.

Goyal accepts the permanence of the eCommerce industry, however, he wants its broader impact should be assessed. He showed his concern for the 100 million small retailers in India who could become victims of disruption due to the eCommerce growth rate per year. In this context, he has expressed support for the offline retail channel. 

He stated, “When Amazon says we are going to invest a billion dollars in India and we celebrate, we forget the underlying story that this billion dollar is not coming for any great service or investment to support the Indian economy”.

“If you make Rs 6,000 crore loss a year, doesn't it sound like predatory pricing to you? They are, after all, an e-commerce platform, and they are not legally allowed to do B2C. However, the reality is all of you buy on these platforms. How are they doing it? Should it not be a matter of concern for us?” he raised.

All the statements by Piyush Goyal reveal a major concern, influencing a careful approach to be pursued for the eCommerce industry in India. 

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