Growth in e-commerce sector should be citizen-centric: Piyush Goyal

India needs to ensure citizen-centric growth of e-commerce, Union Minister of Commerce and Industry Piyush Goyal said on Wednesday, August 21.

The growth of the e-commerce sector must democratise the distribution of benefits amongst the larger section of society, Piyush Goyal said while attending the launch of a report on 'Net Impact of E-Commerce on Employment and Consumer Welfare in India' of Pahle India Foundation as the Chief Guest in New Delhi.

The Minister underscored the need for a balanced approach to the growth of e-commerce in India.

In a bid to acquire more market share, e-commerce companies must not hamper the 100 million retailers across India.

Technology is an instrument to empower, innovate, and meet customers’ needs, said Piyush Goyal.

"There’s a large section out there who still deserves our help. When it comes to jobs and opportunities for the future of India, I think all of us will have to play our part," he said.

The Minister highlighted that protecting India's developing economy and supporting those who still need affirmative action is imperative.

Notably, the report 'Net Impact of E-Commerce on Employment and Consumer Welfare in India' underscored that e-commerce has been a key driver in generating employment in India as online vendors created 15.8 million jobs in the nation, including 3.5 million for women, with about 1.76 million retail enterprises.

Expressing his concerns, Piyush Goyal described the development of the possibility that half of India’s market could become part of the e-commerce network in the next decade as “a matter of concern.”

He conveyed his worry regarding the growing influence of e-commerce on India's traditional retail sector and its potential impact on employment, especially in sectors such as pharmacies and mobile phone repair shops.

Piyush Goyal urged for a dispassionate and data-driven analysis of the broader implications of e-commerce. He further drew from the experience of Western countries, pointing at the decline of traditional “mom and pop” stores in nations such as the United States and in Europe owing to the rise of e-commerce.

"I’m not wishing away e-commerce. It's here to stay, but we have to think very carefully and cautiously about its role. Is predatory pricing good for the country?” Goyal asked rhetorically.

Voicing his concern, the Union Minister urged the business community and experts to carefully evaluate and study the impact of e-commerce in the broader context of the needs of the country in a detailed and scientific manner.

As per a report by the Forbes Advisors, the Indian e-commerce sector is poised to reach approximately ₹7,591 billion by 2029 and has an annual growth rate of 11.45%.