Govt should not revise FDI policy to benefit big e-commerce firms: CAIT

Source: The Hitavada      Date: 04 Jan 2019 09:26:21


 

Business Bureau,


Two big players Flipkart and US-based Amazon are expected to be hit the hardest due to the amendments in the policy

Traders’ body - the Confederation of All India Traders (CAIT) - on Thursday asked the Government not to bring in changes in the FDI policy on e-commerce that could give an upper hand to big players in the sector. The Government last month announced changes to FDI policy for e-commerce sector, which would put an end to the barrage of discounts and cashback offers by online platforms with foreign investment, from February 2019.


Two big players Flipkart and US-based Amazon are expected to be hit the hardest due to the amendments in the policy.
CAIT, which has welcomed the Government’s move, has alleged that a few US-based fora and chambers and some Indian industry bodies are “pressurising” the Government for bringing amendments in the policy to the advantage of large players.


A delegation of CAIT called on Commerce Minister Suresh Prabhu Thursday apprising him of the situation. Confederation of All India Traders Secretary General Praveen Khandelwal, who led the delegation, said the traders’ body will “strongly and stoutly” oppose any move to change the policy to the advantage of major e-commerce players.  “We strongly oppose such tactics and method of coercion and remain as a strong support to the government in its bid to clean the e-commerce market from unfair and unethical business practices,” CAIT said in a letter to Prabhu.


Confederation of All India Traders has demanded an e-commerce policy, an independent regulatory authority for the sector, among others. Khandelwal further said the minister assured them the government was working on an e-commerce policy and would ensure level playing field for all traders.