Traders on Friday called upon the government not to allow foreign direct investment (FDI) in e-commerce as 'the platform will be used to make the country a dumping ground'.
"Dumping happens when prices are artificially lowered by accessing funds from overseas sources. Currently, e-retailers in India are selling products much below the actual price of the manufacturer," Confederation of All India Traders (CAIT) Secretary General Praveen Khandelwal said at a stakeholders meeting with the Commerce Ministry in New Delhi.
"This is nothing but e-commerce dumping. If FDI in e-commerce is allowed, it will facilitate mass-scale dumping of products from all over the globe to India," he said. Khandelwal suggested that an impact assessment on various stakeholders needs to be done in detail before giving any shape to the FDI policy in e-commerce or retail.
CAIT has opposed entry of FDI in any segment of retail and has urged the government to frame a National Trade Policy for Retail to provide better business opportunities to the Indian retail sector.
It's also in favour of a clear policy and guidelines on e-commerce on the lines of the US, the UK, the European Union and China, among others.