India will not allow multi-brand retail by foreign firms, predatory pricing: Commerce minister Piyush Goyal

The government will not allow foreign companies to operate in the multi-brand segment and necessary action will be taken against people indulging in predatory pricing, Commerce and Industry Minister Piyush Goyal said on Wednesday

Press Trust of India June 19, 2019 19:20:27 IST
India will not allow multi-brand retail by foreign firms, predatory pricing: Commerce minister Piyush Goyal
  • The minister said this in a meeting with representatives of associations of kirana stores, traders and retailers

  • He asked all the participants to send their suggestions on the draft e-commerce policy in the next five days

  • According to FDI policy, India permits foreign direct investment in the multi-brand retail sector with a cap of 51 percent ownership by overseas players

New Delhi: The government will not allow foreign companies to operate in the multi-brand segment and necessary action will be taken against people indulging in predatory pricing, Commerce and Industry Minister Piyush Goyal said on Wednesday.

The minister said this in a meeting with representatives of associations of kirana stores, traders and retailers here.

He "reiterated that India will not allow multi-brand retail by foreign companies and on the pretext of B2B (business-to-business) no entry will be allowed for multi-brand retail," the ministry said in a statement.

Goyal also "asserted that predatory pricing will not be allowed and necessary action will be taken against defaulters," the statement said.

India will not allow multibrand retail by foreign firms predatory pricing Commerce minister Piyush Goyal

File image of Commerce Minister Piyush Goyal. PTI

He asked all the participants to send their suggestions on the draft e-commerce policy in the next five days.

The policy will be finalised only after taking into account every suggestion received by the Department for Promotion of Industry and Internal Trade (DPIIT), the minister said.

Goyal also asked the traders to use government e-marketplace and MUDRA scheme to promote their business.

Representatives of the associations of kirana stores, traders and retailers discussed the need for a level playing field and the impact of anti-competitive practices like predatory pricing and other discriminatory methods that are being faced by them from foreign competition.

In a separate statement, Confederation of All India Traders (CAIT), which attended the meeting, demanded early formulation of e-commerce policy.

"A regulatory authority should be constituted to regulate and monitor the e-commerce business with adequate powers to penalise or take action against an entity which violates the policy," it said.

CAIT Secretary General Praveen Khandelwal also said that it needs to be ensured that all kinds of malpractices, including predatory pricing and deep discounts by e-retailers should be stopped.

According to FDI policy, India permits foreign direct investment in the multi-brand retail sector with a cap of 51 percent ownership by overseas players.

Updated Date:

also read

September retail inflation at 4.35 percent, lowest since April, says government data
Business

September retail inflation at 4.35 percent, lowest since April, says government data

The Consumer Price Index-based (CPI) inflation was at 5.30 percent in August and at 7.27 percent in September 2020

China’s third-quarter growth slows to 4.9%, power shortage, slowdown in property sector add to woe
World

China’s third-quarter growth slows to 4.9%, power shortage, slowdown in property sector add to woe

Louis Kuijs of Oxford Economics said in a report that “ugly growth numbers” in coming months are likely to prompt Beijing to ease lending controls

Reliance Retail, designer Ritu Kumar join hands to promote Indian crafts globally
India

Reliance Retail, designer Ritu Kumar join hands to promote Indian crafts globally

Reliance Retail Ventures Ltd has acquired a 52 percent stake in veteran couturier Ritu Kumar's firm Ritika Pvt Ltd for an undisclosed amount