"Not Doing Favour To India": Piyush Goyal On Amazon's $1 Billion Commitment

Amazon's $1-Billion Investment in India No Big Favour Says Piyush Goyal

Amazon's $1-Billion Investment in India No Big Favour Says Piyush Goyal

Amazon hasn't done India any big favours by investing $1 billion in the country, its trade minister said on Thursday, laying bare the tensions with the United States online retail giant during a visit by its CEO Jeff Bezos.

During his India visit, Jeff Bezos announced his plan to invest $1 billion into digitising India's small and medium-sized business enterprises, with the company setting an aim of exporting $10 billion worth of goods from India.

"Our government has allowed e-commerce entities to come to India under the marketplace model", Goyal said. His statements came at a time when Amazon CEO Jeff Bezos made a high-profile visit to India on January 15.

"They may have put in a billion dollars, but then, if they make a loss of a billion dollars every year then they jolly well have to finance that billion dollars", Goyal said in a conference on Thursday organized by think tank Observer Research Foundation.

The $1 billion investment by Amazon.com to help bring small and medium businesses online is on the top of United States dollars 5.5 billion funding it had previously announced.

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Goyal reiterated that foreign e-commerce players would have to abide by the local law if they want to continue to operate in the nation. They claim that huge online companies are indulging in "predatory pricing", which results in great damages for them.

"These are real questions which need answers and I am sure the authorities who are looking at it seek those answers and I am sure the e-commerce companies will have their say on that", he said. Earlier this week, the Competition Commission of India ordered an investigation into alleged violations of competition law by Amazon and Flipkart, which is owned by Walmart.

"Message to investors is please follow letter and spirit of the law".

The minister added that India allows foreign investments in e-commerce marketplace model and in this model buyers and sellers are free to trade, but the marketplace player can not own the inventory, or they can not determine prices.

US-based e-commerce giant Amazon has committed $5.5 billion in India investments and sees the country as a key growth market.

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