NEW DELHI (Reuters) – India has told the foreign e-commerce companies such as Amazon and Walmart’s Flipkart is that they need to provide for the enforcement of the new foreign investment rules that, to them from the provision of steep online discounts, two sources familiar with the discussions told Reuters.
FILE PHOTO: The logo of Amazon is seen at the company’s distribution centre in Boves, France, on May 13, 2019 at the latest. REUTERS/Pascal Rossignol/File Photo
The Commerce Minister, Piyush Goyal has said that the government was willing to listen to your concerns about the new regulations for foreign direct investment (FDI), it is committed to the protection of small traders are of the aggressive behavior exhibited by the foreign-backed companies, the sources said.
The comments were made by Goyal at in a closed-door meeting on Monday with a variety of e-commerce businesses. It comes in a week when US Secretary of state, Mike Pompeo, is the result of a visit to New Delhi is expected to arrive late on Monday or Tuesday, and trade tensions are rising between the two countries.
India, on Dec. 1 is imposed on e-commerce, FDI regulations in order to help the hundreds of thousands of small businesses, but small businesses-and a right-wing group close to Prime Minister Narendra Modi’s ruling party say that, you still have a problem. There are online retailers use complex business structures to circumvent the federal regulations and still burn billions of dollars worth of discounts on offer.
Amazon and Flipkart are saying that they are in compliance with the regulations and also denies any wrongdoing. The two companies, and the united states government, protested against the regulations in January, saying that she was going to force the companies to take their business structures, Reuters reported.
Goyal during a meeting on Monday defended the government’s new FDI policy, the rules should not be violated by each of the company, both in letter and in spirit. The government will not allow e-commerce businesses to incorporate the practice of the impact on small retailers, Goyal said, ” in terms of the three managers is on the rise.
“The minister was quite clear and direct,” said one of the officers.
Flipkart CEO, Kalyan Krishnamurthy, in a statement, said the company looked forward to working with the government, and Goyal had been engaged “in an open-minded, positive and progressive” discussion.
In the Amazon, said he ” welcomed “the open and frank discussion, and the promise of continuous engagement with the government, adding it was committed to supporting a wide range of government initiatives.
In a statement on Tuesday, the commerce department said that it had formed a committee to hear the appeal on issues related to foreign direct investment in e-commerce, add to it, it will make small retailers to thrive in the country. It did not have the detail of the debate on the question of steep online discounts.
The government has brought in a new policy in February, following complaints by small Indian traders, who said that the e-commerce giants, such as their control over the supply of its affiliated suppliers to create an unfair market in which they are being offered big discounts. Such practices are now banned.
The rules, which led to a brief disruption at Amazon’s on-line activities in February and are shocked by Walmart, which was a couple of months for an investment of $16 billion for the acquisition of the control of the India’s Flipkart, in its biggest deal ever.
The government of the United States of america, and the American companies are very concerned about the recent Indian policies. Other than that, the more stringent the e-commerce regulations in India has required companies to store their data locally. By 2017, the United States filed a written protest against the indian decision to cap medical-device prices.
Goyal has held a series of meetings last week with foreign as well as Indian e-commerce companies, and technology companies, with an aim to iron out the policy. He also discussed the government’s press releases describe it as “threats” to local firms face “intense competition from abroad”.
FILE PHOTO: the logo of The indian e-commerce company, Flipkart can be seen in this illustration photo in January 29, 2019. REUTERS/Danish Siddiqui/Image/File Photo
On Monday, all issues, online, discounts, available on Amazon and Flipkart have been discussed and, in particular, during the meeting, both the companies are asked by employees about how the price of the products, the sources said.
Amazon and Flipkart claimed they will provide logistical support and other services to small Indian retailers, who have to make use of their e-commerce platforms to boost their businesses, said a third source who attended the meeting.
“Goyal also said that he does not want that uncertainty for the businesses that he was referring to an inclusive policy that protects the interests of all stakeholders,” said one of the sources.
– Additional reporting by Nivedita Bhattacharjee; Editing by Martin Howell and Louise Heavens