India has told foreign e-commerce firms such as Amazon and Walmart’s Flipkart that they must ensure compliance with new foreign investment rules aimed at deterring them from providing steep online discounts.
Commerce Minister Piyush Goyal has said that while the government was prepared to listen to concerns about its new foreign direct investment (FDI) rules, it was committed to protecting small traders from predatory behaviour by foreign-funded companies.
The comments were made by Mr. Goyal during a closed-door meeting on Monday with several e-commerce companies.
No retrospective changes
Mr. Goyal also said that the e-commerce policy would not have any retrospective changes. All stakeholders would be given enough time to adhere to it, he added.
The Minister also urged the e-commerce companies to honour the spirit as well as the letter of the law.
Mr. Goyal also directed the Department for Promotion of Industry and Internal Trade (DPIIT) to immediately form a committee headed by an Additional Secretary in DPIIT, with representatives from the Department of Commerce, and ministries of MSME and Consumers Affairs, besides legal experts from the government, to hear grievances and provide clarifications on FDI in e-commerce.
“The Minister reiterated that the government will ensure that small retailers and kirana shops thrive in the country,” the Commerce Ministry said in a release.
(With inputs from Reuters)
