Amazon has Not done India any Large Temptations by investing $1 bn: Piyush Goyal

Amazon has not done India any huge favours by investing $1 billion from the nation, its commerce ministry said Thursday, laying bare the tensions using the U.S. online retail giant in a trip by its CEO Jeff Bezos.

Amazon and Walmart’s Flipkart are facing mounting criticism from India’s brick-and-mortar merchants, which accuse the U.S. giants of violating Indian legislation by racking up billions of dollars of reductions to finance heavy reductions and discriminating against little sellers. The companies deny the allegations.

“They might have set in a billion bucks but if they create a loss of a thousand dollars each year they then jolly well have to fund that billion bucks,” Indian commerce ministry Piyush Goyal told a security conference in New Delhi.

“So it is not as if they’re doing a fantastic favour to India if they spend a billion bucks.”

Bezos, who’s now in India, stated on Wednesday Amazon would spend $1 billion to attract modest companies on the internet in the nation, seen as a member of their organization’s attempts to dispel criticism.

Ahead of Bezos’ trip, the Competition Commission of India introduced a probe to Amazon and Flipkart to take a look at allegations of heavy reductions and whether the businesses discriminate against little sellers.

Goyal said the allegations have been”an area of concern for every single Indian”.

About the author

Sarah Lacy

Sarah Lacy

Sarah Lacy is a reporter covering Amazon. She previously covered tech and transportation, and she broke stories on Uber's finances, self-driving car program, and cultural crisis. Before that, she covered cybersecurity in finance. Sarah's work has appeared in The Wall Street Journal, Bloomberg, Politico, and the Houston Chronicle.
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