RSS the economic wing, has taken an initiative to ban the foreign e- commerce firms such as Amazon and eBay as they are killing domestic players in the Indian market. RSS has asked the government to ban them. RSS has also targeted one of the Indian e- retailer such as Flipkart to be banned because it also has high foreign fund infusion.
Leaders of Swadeshi Jagran Manch (SJM) are not happy with the Modi government’s FDI policy. They met the Finance Minister Mr. Arun Jaitley for a discussion on the budget and have sought a white paper on FDI.
Ashwani Mahajan, SJM National convenor told to The Indian Express that Indian e- commerce firms like Flipkart is also being funded by outside so they should also be considered as foreign firms and they should not be allowed to capture the Indian market.
FDI is allowed by Indian law in market place that connects sellers and buyers. A report was given by Motilal Oswal that $11 billion e- commerce market in India is expected to be grown by 37% to reach $ 20 billion by the end of this year.
There is no regulatory body framed by government to keep a check on e- commerce firms. Government doesn’t even have any data regarding that.
Mahajan told that e- commerce firms initiated their business under the UPA Government and they are more harmful than FDI in retail. Further he stated that e- commerce firms gets into unethical pricing and troubles the Indian retailer. The heavy discounts offered by them are in lieu of the data provided by customers. But ultimately these foreign companies are giving dent on Indian retailer’s pocket.
SJM leaders disapproved raising the FDI limit in defence and insurance sectors. They asked Jaitley to come out with a white paper on FDI before he increases the FDI cap in other sectors too.
As per Mahajan our government is taking every initiative towards Make in India, but you are asking for more FDI in different sectors. Our government should take preventive measures against these e- commerce firm and set some regulatory body to govern them.