E-Commerce Impact on Employment: Indian Commerce and Industry Minister Piyush Goyal has expressed concern about the practices of major e-commerce companies. He warned that their strategy of deliberately keeping prices low could lead to job losses in the country. This could negatively affect traditional retail sectors and result in a job crisis.

During an event discussing the impact of e-commerce on employment and consumer welfare, Goyal said that the rapid expansion of e-commerce should not be seen as an achievement but rather as a cause for concern. He questioned whether the fast growth of e-commerce is leading to significant social disruption. Goyal pointed out that in the next ten years, e-commerce might control more than half of the market, which is a troubling issue.

He emphasized the need to seriously consider the role of e-commerce in the country. Goyal criticized the pricing strategies of e-commerce companies, questioning if predatory pricing policies are appropriate for India. While acknowledging the importance of e-commerce, he stressed that its benefits and drawbacks need careful evaluation.

Goyal noted that the market share of e-commerce companies is growing at an annual rate of 27%. This rapid growth could put 10 million small retailers at risk. According to reports, the market share of e-commerce has doubled in three years, rising from 4.7% in 2019 to 7.8% in 2022. He also questioned the celebration of Amazon’s $1 billion investment, suggesting that it may not significantly benefit the Indian economy.