Union Minister Piyush Goyal has said his comments on Amazon’s investment in India have been taken out of context. “Investments are welcome but they should be within the law,” Piyush Goyal has said.
A day after Piyush Goyal called Amazon investing a billion dollars in India “not a favour”, the Union Minister on Friday clarified saying his statement was taken out of context.
“My statement should be seen in context. Investments are welcome but they should be within the law,” Commerce and Industry Minister Piyush Goyal told reporters on Friday.
#WATCH Minister of Commerce Piyush Goyal speaks on his reported statement '…it's not as if they (Amazon) are doing a favour to India when they invest a bn dollars.” He says, "..My statement should be seen in context. Investments are welcome but they should be within the law…" pic.twitter.com/VboRq0RYLr
— ANI (@ANI) January 17, 2020
Piyush Goyal’s remarks came after e-commerce giant Amazon announced that it would invest $1 billion to bring small businesses online in India. Following the statement by Amazon founder and CEO Jeff Bezos, Union Minister Piyush Goyal had said Amazon was doing no favour by investing $1 billion in India.
“They (Amazon) may have put in a billion dollars but if they make a loss of a billion dollars every year, then jolly well will have to finance that billion dollar. So, it is not as if they are doing a favour to India when they invest a billion dollars,” Piyush Goyal had said.
Piyush Goyal had questioned how the online retailing major could incur such “big” losses but for its predatory pricing.
Goyal said 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.
The minister 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.
“They are investing money over the last few years also in warehousing and certain other activities, which is welcome and good. But if they are bringing in money largely to finance losses and those losses in an e-commerce market place model,” Goyal had said.
He added that in a fair market place model in a turnover of USD 10 billion dollars, if a company is incurring loss of billion dollars, it “certainly raises questions, where the loss came from”.
Source: India Today