The Confederation of All India Traders (CAIT) on Tuesday stated that it will create a unanimous resolution to propose to the central government and a memorandum to be presented to all state chief ministers, against the unchecked and unethical operations of both foreign-funded e-commerce giants and Indian quick commerce platforms.
In association with All India Mobile Retailers Association (AIMRA), All India Consumer Products Distributors Federation (AICPDF), and Organised Retailers Association (ORA), CAIT highlighted that India’s retail sector which is considered to be the second largest employment generator is under siege by companies that are blatantly violating laws, manipulating markets, and systematically dismantling small retailers for profit.
Demanding an independent regulatory body, Praveen Khandelwal, CAIT Secretary General and Member of Parliament from Chandni Chowk criticize the aggressive algorithm-driven consumer manipulation and the reckless use of FDI for predatory pricing.
He accused these platforms of using FDI to finance losses, destroy small shops, and capture control over the supply chain.
“It’s not trade anymore—it’s a race for valuations, and the casualties are India’s small retailers,” he stated.
He also said that a strategic roadmap of a full-scale nationwide campaign will be released at CA1T’s National Governing Council Meeting in Bhubaneswar on April 25.
Recently, union commerce minister Piyush Goyal took a dig at Indian start-ups that spark a debate. He said, “We have to be willing to evolve and learn. [If] we want to be bigger and better, then we have to be bolder and we should not fight shy of the competition.”
“Do we want to make ice creams or [semiconductor] chips?” he questioned.
In December 2024, the CAIT representing 70 million traders had written to Goyal, drawing his attention to the alleged violations of laws and regulations by quick commerce companies.
In its letter, the CAIT alleged how these firms are misusing foreign investments to distort the country’s retail market, creating major threats to small shopkeepers.
It had also released a white paper on this issue, a copy of which has also been sent to the minister.
Earlier, the Competition Commission of India (CCI) published a report in which it found many discrepancies in the operations of two e-commerce giants Flipkart and Amazon. It highlighted that the two e-commerce platforms reportedly flouted the competition laws of the country. The investigation claimed that the two e-commerce platforms preferred certain sellers over others, hence breaching the anti-trust laws.
Now, the CCI may plan to move the Supreme Court with regards to the anti-trust case against e-commerce platforms Amazon and Flipkart.
