Commerce minister Piyush Goyal said global online retail giant Amazon.com Inc indulged in predatory pricing even as Bharatiya Janata Party leader Vijay Chauthaiwale took a dig at its founder Jeff Bezos for publishing “unduly” critical reports on the Modi government in The Washington Post, which he owns.
A day after Bezos, currently on a visit to India, announced fresh investments of $1 billion in India, Goyal said Amazon was not doing any favors to the country with its investment asked whether the huge losses made by the company were linked to “predatory pricing or some unfair trade practices”.
Goyal said Amazon was not doing any favors to the country with its investment
Goyal acknowledged Amazon’s investments in warehousing. However, but asked whether the money brought in “largely to finance losses in an e-commerce market place model.” He added that this raised questions of “where the loss came from”.
There has been considerable pressure on the government from the affiliates of the Rashtriya Swayamsevak Sangh, its ideological parent. Also, trader groups to reconsider the policy on FDI in online retail. Traders claim Amazon is taking away their business. Amazon’s position is that it serves as a platform in India. Also, many of the traders who complain are themselves on the platform.
Ashwani Mahajan of the Swadeshi Jagran Manch, an affiliate of the RSS. However, said Goyal’s comments indicate that the Centre may have become “more sensitized to the problems of opening up FDI (in online retail)”.
“There is a fear in every trader’s mind that these global chains will kill their business.”
Meanwhile, reacting to a statement by Bezos where he said the 21st century will India’s; Chauthaiwale tweeted: “@JeffBezos, please tell this to your employees in Washington DC. Otherwise, your charm offensive is likely to be a waste of time and money.”
“I am a regular customer of Amazon and not against them. But I am definitely against what Washington Post is writing,” Chautaiwale said.
An Amazon spokesperson did not immediately comment on the matter.
Chidambar tweeted on Goyal statement
P. Chidambaram has taken a tremendous toll on Goyal’s statement from his many tweets. He said that he should insult some more people, as it will help in achieving a $ 5 trillion economy.
Chidambaram said, ‘This will become a great headline in the world media. This will reverse imports falling for five months and exports falling for eight months. They should insult some more people to increase exports and imports. Goyal insulted Abhijeet Banerjee, who was earlier awarded the Nobel and is now Bezos’ number. They should also insult Sundar Pichai and Satya Nadella so that India can be made a $ 5 trillion economy.