Union Commerce Minister Piyush Goyal addressed the impact of e-commerce on employment and consumer welfare during a recent event in Mumbai.

Goyal acknowledged the significant changes brought by Amazon and Walmart's Flipkart to India's retail landscape, highlighting their substantial investments aimed at attracting consumers.

While recognizing the advantages of e-commerce, Goyal expressed concerns about its rapid growth potentially harming traditional retail employment.

He warned that e-commerce giants like Amazon could disrupt the livelihoods of millions of small retailers and shop owners.

The Indian government is increasingly cautious about the growing power of e-commerce firms, which poses a threat to small retailers, a crucial voter demographic.

Goyal raised alarms about Amazon's reported losses, attributing them to potential predatory pricing practices, which he believes could harm local businesses.

In response to these concerns, Amazon announced a reduction of up to 12% in selling fees across various product categories, effective September 9, 2024.

Amit Nanda, Amazon India's director, stated that these fee changes aim to assist sellers in preparing for the upcoming festive season.

For instance, sellers of products priced under Rs. 500 will see their referral fees significantly reduced, making it easier for small businesses to compete.

The Indian government is also evaluating new policies to target unethical trading practices in the e-commerce sector, balancing investor attraction with local economic protection.

Goyal clarified that while he supports e-commerce, it must operate under fair competition with offline businesses to protect local retailers.

He cited the decline of small retailers in the US as a cautionary tale for India, emphasizing the need for structured growth in the e-commerce sector.