CAIT requests Suresh Prabhu, Hon’ble Minister for Commerce & Industry for immediate attention on the recent changes in FDI Policy in E Commerce-Pressure Tactics of Global e commerce players which is as follows:
In the wake of recent clarification of DIPP regarding FDI Policy in e commerce, it is seen that various global e commerce players jointly and severely have initiated a vested interest campaign demanding deferment, extension, amendment or changes in the said policy even threatening to exit from Indian business which is quite unreasonable, uncalled for, arbitrary and amounts to exercise pressure tactics on the Government.
We being representative body of 70 million small businesses of the Country strongly oppose such attitude and pressure of e commerce players in combination with few US based Chambers and Organisations as also roping in few Indian Industry bodies and their vested interest investors. They have gone to the extent that some of the so called research groups are releasing media stories stating sharp decline in online sales if policy is continued.
We are constrained to mention that if Government succumb to their arbitrary pressure, the trading community will left with no other alternative but to launch a national campaign against any such deferment or extension or otherwise and will expose sinister designs of these global e commerce players.
We wish to add that the said FDI policy is in implementation since 2016 and the recent Press Note 2 of the Government is merely a clarification of the policy. There is nothing new in the policy and in a clandestine manner these e commerce players are calling it as curbs. The broad question is when the policy is in operation since 2016 why they kept mum and suddenly after the clarification, they are making huge hue & cry. We understand that since during last two years they were indulging into all kinds of malpractices including predatory pricing, deep discounting, exclusivity and loss funding, these have become basic fundamental of their business. Now, since the Government has made its intentions very clear to implement the policy strictly, their said model will not be continued and this is the reason why they are upset and using all methods of pressure tactics.
It is noteworthy to mention that their business methodology and ultimate aim to capture, control and dominate Indian retail trade through e commerce has been greatly shattered with announcement of clarifications by the Government and therefore now they are bent upon in using all methods of pressure and coercion, said, Praveen Khandelwal, Secretary General, CAIT.
In furtherance of the intention of the Government, it is more necessary that the policy is strictly implemented in its true letter and spirit and for this purpose, we suggest the following :
- An Independent Regulatory Authority for E Commerce should be constituted to regulate and monitor the e commerce trade. The said Authority should be duly empowered to take action against any entity which defy the policy.
- E Commerce Policy which is long awaited should be framed and declared immediately without taking much time.
- The FDI norms as spelled out in the policy should also be made applicable on domestic e commerce players as well to restrict them for adopting any unethical business practices and remain at par with other e commerce players.
- The e commerce players should be directed to obtain a Compliance Certificate for every financial year for complying the norms of the policy and those who are not able to obtain said Certificate should not be allowed to raise funds and the operations of their portal should be suspended.