The newly passed amendments by the Modi regime have been denounced by the US-India Strategic Partnership Forum (USISPF). The forum called the amendments as regressive and further, stated that it can be detrimental for the online retail market in India. Owing to the unthoughtful decisions taken by the government can harm the Indian consumers and create sudden changeability in the ecosystem, according to the USISPF.
It is not the government's business to micromanage businesses" asserts USISPF forum and said that the amendments are passed without any consultation.
Lately, the government has agreed on the demands of the small domestic traders and passed an amendment halting the cashback offers and discounts that are catered by the e-commerce companies, backed by foreign investments. These norms will come in effect as of February 2019.
"The amendment to the FDI in e-commerce policy is regressive. It harms the consumer, who is ultimately the king in any retail environment. It is not the government's business to micromanage businesses. This amendment bars Indian manufacturers and sellers from effectively competing in the global online marketplace," said Mukesh Aghi, USISPF President and Chief Executive Officer.
With the recent e-commerce norms, niche players in the online retail market viz. Amazon and Flipkart will majorly hit whilst the domestic players viz. Snapdeals and ShopClues have welcomed the governments decision. After the ordinance, a stir has emerged in the industry begetting USISPF to highlight the significance of American companies investment in fortifying the Indian online retail ecosystem and employment generation.