The Indian Secretary of Commerce is not impressed by Amazon's new $ 1 billion investment.
A day after Amazon CEO Jeff Bezos Piyush Goyal, the country's trade minister, announced that his company is investing an additional billion dollars in India. This brings the total local investment to $ 6.5 billion to date.
"They may have invested a billion dollars, but if they lose a billion dollars a year, they will have to fund those billions," said Goyal at a conference organized by the Think Tank Observer Research Foundation on Thursday. "So it's not like they are doing India a big favor by investing a billion dollars."
The Indian minister's remark comes days after the national cartel officer announced an investigation into alleged predatory practices by Amazon India and Flipkart.
Bezos, who is in India this week, tried to meet India's Prime Minister Narendra Modi, However, his application has yet to be approved, TechCrunch said.
Goyal affirmed that foreign e-commerce players would have to comply with local laws if they wanted to continue operating in the nation. He said the watchdog's claims are "a cause of concern for every Indian".
“We allowed every company to come to India according to a market model. A marketplace model is an agnostic model that allows buyers and sellers to trade freely. If they make an agreement, the transaction between buyer and seller takes place. The marketplace cannot own the inventory, cannot control the inventory, cannot set prices, and cannot have an algorithm that affects how products from different sellers are listed on the platform, ”he added.
“We have different rules for marketplaces in India. As long as you follow them, they can operate in India, ”he said. Some of the allegations being investigated in India relate to the alleged violation of the above guidelines.
Goyal's comment could further exacerbate tensions between Amazon and the Indian government. Last year, US senators criticized New Delhi after preventing foreign companies from selling inventory from their own subsidiaries. The move forced Amazon and Flipkart Abruptly pulling hundreds of thousands of goods from their marketplaces.