'Not doing India a favour': Piyush Goyal on Amazon's $1 billion investment

Amazon’s fresh $1B investment in India is not a big favor says India trade minister		
		
	Manish Singh

		8 hours

Amazon’s fresh $1B investment in India is not a big favor says India trade minister Manish Singh 8 hours

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. He said the watchdog's allegations were "an area of concern for every Indian". It has been speculated that both Goyal and PM Modi were not meeting Bezos not just because Amazon faces protests from traders in India, but also because the government was unhappy with the Washington Post's criticism of the government.

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. "Don't try to find loopholes when clearly we have articulated what the e-commerce model is". Apart from the billion dollar investment, which is aimed at bringing millions of Indian businesses online, the billionaire pledged to export $10 billion worth of Indian products by 2025. They claim that huge online companies are indulging in "predatory pricing", which results in great damages for them. Authorities will seek those answers, he said at Raisina Dialogue, a multilateral conference held annually in New Delhi. 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.

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

Every ecommerce player has to follow rules of the marketplace, the minister added.

"Whether they are doing that or not is a matter of the investigators to decide.whatever (would be their) findings, that should be respected by everybody", Goyal said.

"I have on more than one occasion, said this to the people of India and to all investors, that to please follow the letter of the law and the spirit of the law", Goyal said in a tweet.

Latest News