Bezos announces $ 1 billion investment in India

Netease Technology News on January 17, according to foreign media reports, Amazon CEO Jeff Bezos announced a new $ 1 billion investment plan during his visit to India to help digitalize SMEs in India . But India ’s trade minister said Thursday that Amazon ’s new investment has not brought any benefit to India.

More and more Indian physical retailers have accused Amazon and Wal-Mart ’s Flipkart and other U.S. industry giants of violating Indian laws, using capital advantages to fight price wars, causing billions of dollars in losses to local merchants and discriminating against small businesses. Both companies have denied the allegations.

Bezos said during a visit on Wednesday local time that Amazon will invest another $ 1 billion in India to help small businesses launch online businesses in addition to the $ 5.5 billion investment promised in 2014.

“They may have invested $ 1 billion, but if they cause $ 1 billion in losses each year, they must provide 10,” Indian Trade Minister Piyush Goyal said at a security conference in New Delhi. Billion dollars. ”

“So, when they invested $ 1 billion, they were not helping India.”

Amazon did not respond to a request for comment.

Prior to Bezos’ visit to India, the Competition Commission of India launched an investigation into Amazon and Flipkart to investigate allegations of unusually high discounts on products and whether the companies discriminated against small sellers.

Goyal said the allegations were “a concern for every Indian.”

India only allows foreign e-commerce companies to operate retail market platforms, allowing third-party sellers to sell goods to consumers through the platform. Small retailers say that Amazon and Flipkart circumvent these regulations by acting as sellers or vendors, and offer deep discounts through these sellers or vendors. Both companies have denied the allegations.

Goyal welcomed Amazon’s investment in recent years, but questioned whether the funds just made up for the losses caused by the large discounts on the products.

In October last year, a report was cited citing the filings of the Indian Companies Registry, stating that Amazon’s India market unit lost 56.85 crore ($ 802 million) in the fiscal year ending March 2019.

“How can a market cause such large losses unless they condone predatory pricing or some unfair trade practices? These are the questions that really need answers.”

Three sources on Thursday said local Prime Minister Narendra Modi was unlikely to meet him during Bezos’ visit to India. Despite Bezos’ trade concerns and India’s ongoing antitrust investigations, he has repeatedly called for meetings with Modi.

Last year, India imposed new stringent regulations on foreign investment in e-commerce, forcing Amazon to restructure its business and causing tension between the two countries.

Leave a Reply

Your email address will not be published. Required fields are marked *