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New Delhi (Sputnik): Indian traders are up in arms against e-commerce giants like Amazon and the multinational retail corporation Walmart, who have displaced tens of thousands of small local businesses.
Concerned over the proliferation of these multinational giants, an affiliate of India’s ruling Bharatiya Janata Party (BJP) has asked the federal government to cancel their licenses. Swadeshi Jagaran Manch or Forum for National Self-Reliance has sought the intervention of Prime Minister Narendra Modi to save the livelihoods of tens of thousands of traditional shop keepers in the country.
“Dear PM, please look at the plight of poor shopkeepers & cancel licence to big e-comm giants,” tweeted Ashwini Mahajan, Chief of Swadeshi Jagaran Manch.
We don’t want localisation of data and keep our monopoly, we don’t want to commit on local sourcing; we will keep denying any wrong doing and circumvention of law; but you facilitate us! Dear PM please look at the plight of poor shopkeepers & cancels licence to big e-comm giants https://t.co/hTczYymEju— ASHWANI MAHAJAN (@ashwani_mahajan) October 22, 2019
Mahajan also slammed Walmart, which "does not commit to anything, but want policies in its favour." He was referring to a reported letter written by the global giant's CEO, Doug McMillon, to Indian Prime Minister Narendra Modi asking for "certainty and predictability in India's business environment". McMillon has promised the company's commitment to India, including investments to empower small and medium enterprises, global sourcing from the country and job creation.
Meanwhile, an umbrella organisation of traders in India has asked the federal Trade Minister to review the business model of e-commerce companies. The Confederation of All India Traders (CAIT) has claimed that predatory pricing by these online marketplaces is a violation of the Foreign Direct Investment policy. CAIT has also asked Federal Trade Minister Piyush Goyal to conduct a review of the business models of these e-companies.
According to Global Seller Index report from Payoneer, a cross-border payment platform, e-commerce sales have gone up by 121 per cent year-on-year, in India. Another market and consumer data provider, German-based Statista said, e-commerce market share in India amounted to $32,348 million in 2019. This share is estimated to grow at 17.8 per cent per annum to reach up to $62,284 million by 2023.