All India Mobile Retailers Association (AIMRA) has taken a swipe at US President Donald Trump, while urging the Indian government to act swiftly against what it calls “predatory” and “unlawful” practices by American e-commerce giants Amazon and Flipkart.
In a letter addressed to Indian authorities, AIMRA demanded the immediate implementation of a stringent e-commerce policy and the creation of a regulatory body to oversee foreign online platforms operating in the country.
“When a US President like Mr. Donald Trump can unilaterally impose unfair and unethical tariffs of up to 50% on India without any justification, why is our own government, under the leadership of Shri Piyush Goyal ji, waiting to roll out a strict e-commerce policy with a regulatory body? How long must we live in fear of America’s economic dominance? It is high time to take decisive action against these anti-competitive and unlawful e-commerce companies to protect our own people and our economy,” AIMRA said in a sharp statement.
The association accused Amazon and Flipkart of engaging in anti-competitive behaviour, including collusion with Original Equipment Manufacturers (OEMs) and banks to offer exclusive deals and cashbacks that undermine traditional brick-and-mortar retailers.
“These practices are decimating India’s retail sector, leading to widespread shop closures and rising unemployment,” AIMRA said, citing findings from India’s Competition Commission.
AIMRA also alleged that e-commerce platforms were complicit in schemes that result in phones being illegally exported after being pre-activated, depriving the Indian government of tax revenue through GST drawbacks and export incentives.
“The misuse of incentives and tax structures by companies that report losses and pay no taxes is damaging the national exchequer,” AIMRA warned, adding that the upcoming festive season could turn into a “Black Diwali” for Indian retailers if the government does not intervene.
The group urged Commerce Minister Piyush Goyal to convene a meeting and fast-track legislation, saying the livelihoods of millions of small retailers depend on it.