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Union Minister of Commerce and Industry Piyush Goyal emphasised the need for a balanced and citizen-centric approach to the growth of e-commerce in India. Speaking at the launch of the Pahle India Foundation’s report on the “Net Impact of E-Commerce on Employment and Consumer Welfare in India” in New Delhi, the Minister stressed the importance of ensuring that the benefits of e-commerce are equitably distributed across society.
Minister Goyal highlighted that while technology can empower and innovate by enhancing consumer experiences, it must not come at the cost of traditional retail sectors. He cautioned that in the pursuit of market share, the interests of 100 million small retailers across the country should not be disrupted. “In the race for growth, we must not lose sight of those who still need affirmative action and protection,” he remarked.
The Minister also addressed concerns about the potential dominance of e-commerce in India’s retail landscape, warning that half of India’s market could be integrated into e-commerce networks within the next decade. He urged for a measured and data-driven evaluation of e-commerce’s impact, noting the decline of small businesses in Western countries as a cautionary example.
While acknowledging that e-commerce is here to stay, Minister Goyal called for careful consideration of practices like predatory pricing that could harm local businesses and employment. He underscored the importance of assessing e-commerce’s role in sectors such as pharmacies and mobile repair shops, which may be particularly vulnerable to disruption.
While emphasising the need for caution, inclusiveness, and equity in its expansion, India is promoting digital commerce as a key driver of economic growth. The government advocates a balanced approach that prioritises small retailers and ensures the benefits of digital transformation are accessible to all sections of society.
The Department for Promotion of Industry and Internal Trade (DPIIT) recently held the first ‘ONDC Startup Mahotsav,’ marking a key moment in India’s digital journey by merging the Startup India initiative with the Open Network for Digital Commerce (ONDC).
The event attracted over 5,000 startups and 125 key industry stakeholders, showcasing the government’s strong focus on supporting entrepreneurship and innovation. Attendees, including established unicorns and high-growth startups, signed Letters of Intent to leverage ONDC’s platform to transform digital commerce in India.
The Mahotsav highlighted the strategic vision behind ONDC, which aims to level the playing field in e-commerce by onboarding 500,000 sellers, with 70% representing small and medium-sized enterprises. Discussions explored themes like collaboration in Indian e-commerce and how ONDC can drive startup growth. With over 125 startups pledging to join ONDC, the platform is set to democratise access to digital opportunities and empower businesses of all sizes.
The event underscored the role of ONDC in fostering public-private partnerships that fuel economic growth and digital transformation. Initiatives like ONDC, coupled with the Startup India programme, are crucial in helping India’s startups unlock new market opportunities and expand their reach.
As ONDC facilitates millions of transactions, it sets the foundation for an inclusive digital economy where diverse sectors, from retail to manufacturing, can benefit from the growth of online commerce.
OpenGov Asia reported that the Directorate General of Foreign Trade is partnering with e-commerce platforms to boost MSME exports through the Districts as Export Hubs initiative. This collaboration focuses on capacity-building and training in selected districts to connect local producers with global markets, aiming to enhance e-commerce exports and support India’s US$1 trillion export goal by 2030.
Minister Goyal urged stakeholders to carry out thorough, data-driven studies on the evolving impact of e-commerce to ensure growth aligns with India’s economic needs and societal interests. This approach supports the nation’s vision of an inclusive digital economy that benefits all citizens.
