Amazon's $1-Billion Investment in India No Big Favour, Says Piyush Goyal
16 Janvier, 2020, 15:50 | Auteur: Auguste Feret
A day after Amazon chief executive Jeff Bezos announced that his company is pumping in an additional $1 billion into its India operations, making the total local investment to date to $6.5 billion, the nation's trade minister Piyush Goyal said Amazon's investment was not a big favor to the country. "So it's not as if they are doing a great favour to India when they invest a billion dollars".
Meanwhile, the minister's office tweeted that all investors should follow the letter and the spirit of the law without seeking any "loopholes when clearly we have articulated what the e-commerce model is". His statements came at a time when Amazon CEO Jeff Bezos made a high-profile visit to India on January 15.
Bezos, who is now in India, said on Wednesday that Amazon would invest $1 billion to bring small businesses online in the country, seen as part of the company's efforts to dispel criticism.
He claimed the investment would help boost exports of Make-in-India products on the online marketplace to $10 billion in five years. "But if they are bringing in money largely to finance losses and those losses in an e-commerce marketplace model", Goyal said.
"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.
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"I've said this to investors. please follow letter and spirit of the law".
Days before Bezos went to India, New Delhi's antitrust regulator opened an investigation into Amazon and Flipkart over allegations that the retail majors are indulging in anti-competitive practices to gain a foothold in the country.
Every ecommerce player has to follow rules of the marketplace, the minister added.
Further, he said that India has strict rules for FDI in multi-brand retail trading and anybody who tries to use the e-commerce marketplace model to get into the multi-brand retail space surreptitiously will have to be questioned and investigated. "In this 21st century, the most important alliance is going to be the US-India alliance", he added.
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