Union Commerce Minister Piyush Goyal on Wednesday raised concern about predatory pricing by e-commerce platforms and the potential loss of employment in the traditional retail sector.

At the launch of the report Net Impact of E-Commerce on Employment and Consumer Welfare in India, the minister asked “Are predatory pricing policies good for the country?”

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He further criticised the investment strategies of large e-commerce companies, suggesting that their losses are offset by significant payments to professionals and top lawyers.

“When Amazon says they’re going to invest a billion dollars in India, we all celebrate, but we forget the underlying story—that billion dollars is not coming in for any great service or investment to support the Indian economy. They made a billion-dollar loss in their balance sheet that year. They have to cover that loss,” he said.

“And how did that loss occur? They paid Rs 1,000 crore to professionals. Unless you’re paying all the top lawyers to block them so that nobody can fight a case against them…If you make a Rs 6,000 crore loss in one year, does that not smell of predatory pricing to any of you? What caused that loss? They are involved in all the e-commerce platforms. They are not allowed to do B2C,” Goyal said.

While the minister acknowledged the crucial role of e-commerce, he emphasised the need to ‘think cautiously’ about how that role can be played in a ‘more organised’ way, considering both the benefits and drawbacks of the e-commerce space.

As per the report launched by Pahle India Foundation, e-commerce is a key driver of employment generation, with online vendors employing 54 per cent more people and nearly twice the number of female employees.

The report also noted that the growth of e-commerce has not come at the cost of traditional retail. Less than a fifth of offline vendors reported physical store closures in their neighbourhoods since 2020—the year that saw a boom in the e-commerce space.

Meanwhile, physical retail continues to grow and thrive.

However, Goyal did not agree with the report’s findings and stated that there is a need for policies that protect local businesses and ensure fair competition in the e-commerce sector.

The minister stressed that the government should take a proactive role in assessing the impact of e-commerce on employment and local businesses.