Amazon’s announcement of mega investment of $35 billion in India has certainly excited the e-commerce sector, but has created deep concern among small traders and local markets. The business world believes that this investment will create a system of technology and automation that can completely change the Indian retail structure in the coming years. The question is, will this change bring opportunities or will it pose a new challenge to the livelihood of millions of small traders?
Delhi Trade Federation (Regd.) President Devraj Baweja and Senior Vice President Rajendra Kapoor, while sharing information with the team of ABP Live, said that the history of arrival of foreign companies in India has always been under question. From the East India Company to modern global brands—they always start with the intention of expanding the business, but within a few years they establish a monopoly on the market. Traders organizations believe that Amazon’s new investment could be the latest installment of the same series.
small shopkeeper vs amazon
According to Baweja and Kapoor, the Indian small shopkeeper is facing the brunt of limited inventory, rising rents and costs. Amazon, on the other hand, has immense capital, artificial intelligence based logistics, huge discount offers, large warehouses and 24×7 digital reach. In such a situation, the level of competition has already skyrocketed. Traders clearly say that this competition can prove to be the destruction of small shopkeepers in the long run.
Threat of private label to domestic producers
Amazon offers its private label products at very low prices. This has a direct impact on the sales of small Indian manufacturers. This may have a negative impact on production units, artisans and traditional industries. Experts say that if this trend increases, it will have a big impact on the country’s manufacturing capacity and employment.
From Chandni Chowk to Khari Baoli, centuries old markets in trouble
Markets like Sadar Bazaar, Karol Bagh, Khari Baoli, Gandhi Nagar of Delhi are not only centers of business but also cultural heritage. The customer base of these markets has already started getting affected due to the prices and delivery models of e-commerce companies. Traders fear that the very existence of these historical markets may be in danger in the coming times.
Impact on employment due to technology and automation
Amazon’s new investment will mainly be in technology, robotics and large automated warehouses. This is likely to affect the employment of local delivery networks, small warehouse workers, shopkeepers and micro-producers. Business organizations estimate that this trend may increase unemployment.
Question of tax on profits of foreign giants
Trade organizations argue that foreign companies send a large part of their profits abroad through tax structures. In comparison, Indian businessmen pay taxes at every level. The business world considers this imbalance as a long-term risk for India’s economy.
Delhi Trade Federation’s protest: Demand for immediate intervention from the government
The Delhi Trade Federation (Regd.) has strongly opposed Amazon’s investment, warning that this step could prove to be the ‘final nail’ on the Indian business style and tradition of small traders. The Federation says that this is a direct threat to the livelihood of millions of families.
Policy solution the only way out?
The federation has demanded from the government that such investments should be immediately banned and concrete policies should be implemented to protect small traders, domestic industries and local entrepreneurs, so that foreign companies cannot monopolize the Indian market at will.
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