Indian traders lobby for ban on Flipkart, Amazon sales
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The Confederation of All India Traders is asking the government to ban pending sales events to be held by e-commerce rivals Amazon and Flipkart.
The confederation, which represents 500,000 merchants and traders within the country, claims that the heavily discounted online sales violate India’s restrictions on online retail for foreign firms.
“By offering deep discounts ranging from 10 percent to 80 percent on their e-commerce portals, these companies are clearly influencing the prices and create an uneven level playing field which is in direct contravention of the policy,” read a letter from the retailer body to the federal trade minister.
Both online firms have defended the sales festivals, claiming they offer best value for money to consumers and help small-scale retailers reach broader markets.
India forbids foreign investors from direct involvement in inventory-driven models of e-commerce in order to protect the country’s retailers who are unable to compete on price.
Questions & Answers
Q.What is the primary reason the Confederation of All India Traders wants sales events banned?
What is the primary reason the Confederation of All India Traders wants sales events banned?
The Confederation claims that the heavily discounted online sales by Amazon and Flipkart violate India's restrictions on online retail for foreign firms. They argue these discounts unfairly influence prices and create an uneven playing field for traditional traders.
Q.How are Amazon and Flipkart defending their planned sales festivals?
How are Amazon and Flipkart defending their planned sales festivals?
Both online firms have stated that their sales festivals offer the best value for money to consumers. They also claim these events help small-scale retailers broaden their market reach across India.
Q.Why does India have restrictions on foreign investors' involvement in e-commerce?
Why does India have restrictions on foreign investors' involvement in e-commerce?
India forbids foreign investors from direct involvement in inventory-driven e-commerce models. This policy aims to protect the country's domestic retailers, who would otherwise struggle to compete on price with larger foreign-backed online firms.
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