New Delhi
: The All India Trader (CAIT) federal announced on Tuesday that it plans to make recommendations to the Ministry of Commerce and Consumer Affairs to address the challenges facing retail merchants’ rapid expansion.
The association represents a number of small traders to promote policy solutions that include immediate implementation of foreign direct investment (FDI) policies throughout the wider e-commerce market, including fast commerce, and the implementation of e-commerce rules under the Consumer Protection Act to protect small businesses.
Kate also proposed taxation under GST for luxury taxes on purchases made through e-commerce platforms.
In addition, the association said its branches, such as the All India Consumer Product Distributors Federation (AICPDF) and the All India Mobile Retailers Association (AIMRA), will contact the Human Rights Commission on the welfare of workers in the gig economy.
Earlier this year, the AICPDF filed a petition to the Competition Commission of India (CCI), accusing the deep discounts and unfair practices of fast-moving business platforms.
Retailers seek supervision
During Tuesday’s meeting, Cait members asserted that fast business companies forced numerous small store owners to close by by over-discount and expansion in major cities. They added that, backed by private investment, these platforms can expand rapidly while offering discounts and convenience.
Cait Secretary General Praveen Khandelwal said: “Cai will make recommendations to the Minister of Commerce and the Minister of Consumer Affairs. They have expressed concern that the government is working hard.”
“After a lot of deliberation, the Indian government has almost prepared e-commerce policies. Now, we believe that the right time is set for e-commerce policies and (e-commerce) rules under the Consumer Protection Act to protect retail democracy in the country,” he said.
He added: “This is a completely new sector, but there is no regulatory framework yet. We ask the government to also form an independent regulatory body for digital commerce to cover e-commerce and fast commerce platforms.”
Small traders raise alarm
Small traders have been working with loggerheads on fast business platforms, and they claim to have eaten in the business of local popular stores.
Over the past two to three years, Rapid Business Company has reshaped India’s retail landscape. Companies like Zepto, Blinkit and Swiggy Instamart have promising delivery in 30 minutes, helping shoppers replace trips to small grocery stores with online orders. According to Redseer data, the Rapid Business Platform reported that total commodity value increased by 77% to $2.8 billion in 2023. According to Bain & Co’s estimates, the fast business market is expected to grow by more than 40% per year every year until 2030.
Kate also recommends banning online platforms from running inventory-led operations, where the platform owns and sells inventory. Instead, they should serve as a marketplace that allows third-party sellers to sell goods to shoppers through the platform.
Under the automatic route of the market model, India allows 100% FDI or FDI; inventory-based e-commerce models do not allow FDI. The association also seeks to quickly deploy algorithms, pricing and mandatory transparency of seller choices by business companies.
“We ask the government to protect and promote small retail stores,” Khandelwal said.
