JOIN USAhead of a crucial Centre-state meeting on eCommerce next week, the apex traders’ body urged the government not to allow FDI in eCommerce as it will make India a ‘dumping yard’.
“Dumping happens when prices are artificially lowered by accessing funds from overseas sources, be it government or otherwise. Currently, under the eCommerce business in India, the eRetailers are selling products much below the actual prices of the manufacturer. This is possible only because of funding received from overseas,” Confederation of All India Traders president Praveen Khandelwal said.
He said, if FDI in eCommerce was allowed, it would facilitate large-scale dumping of products from across the globe.
His remarks are significant as the Commerce and Industry Ministry has called a meeting of states on July 15 to discuss FDI in eCommerce retailing, working of the eCommerce industry, and its tax structure.
The ministry has asked all chief ministers, requesting them to nominate a concerned minister on the matter to participate in the meeting, which will be chaired by commerce and industry minister Nirmala Sitharaman.
Last month, the ministry had discussed the matter with all stakeholders, including major domestic eCommerce companies such as Flipkart and Snapdeal to understand the broader context of eCommerce, and whether FDI in the sector is affecting the level-playing field of the brick and mortar stores.