Reportedly a day after the world's richest person jeff bezos announced fresh $1 billion investment in india, Union Commerce and industry minister piyush goyal on thursday said that Jeff Bezos's firm amazon was not doing a favour to the country by the investments and questioned how the online retailing major could incur such "big" losses but for its predatory pricing. Meanwhile piyush goyal, who has not yet given jeff bezos an audience, said that e-commerce companies have to follow indian rules in letter and spirit and not find loopholes to make a back-door entry into multi-brand retail segment.
Furthermore india does not allow foreign investment beyond 49% in multi-brand retailing and has not yet approved any application of overseas retailers. piyush goyal said at an event in New Delhi. Reportedly the $1 billion investment by amazon.com to help bring small and medium businesses online is on the top of $5.5 billion funding it had previously announced.
As per report piyush goyal wondered why an e-commerce market place model, where a firm provides an IT platform for buyers and sellers, incurring huge losses adding that it needs to be looked upon. Moreover piyush goyal added that india allows foreign investments in e-commerce market place model and in this model buyers and sellers are free to trade, but the market place player cannot own the inventory, or they can not determine prices.