New Delhi, April 26: The Confederation of All India Traders (CAT) has raised concerns regarding the potential risks to India’s traditional retail market if the rapidly growing digital marketplace remains unregulated. This sector is vital for generating self-employment and job opportunities across the country.
In a letter addressed to Union Commerce and Industry Minister Piyush Goyal, CAT’s Secretary General and MP Praveen Khandelwal referred to a recent joint report by Deloitte and Google titled “The $250 Billion Commerce Frontier.” The report highlights the significant expansion expected in India’s digital commerce market while emphasizing the urgent need for policy safeguards to ensure fair competition and balanced growth.
According to the report, India’s e-commerce market is projected to grow from approximately $90 billion in 2019 to an estimated $250 billion by 2030. It also notes that by 2030, 22 million new Generation Z customers will engage in online shopping, accounting for 45% of total online spending. An additional 15 million customers are expected to join the online marketplace, with per capita e-commerce spending anticipated to double.
Over 60% of customers in tier-2 cities and small towns are already purchasing goods online, contributing nearly half of the total spending and about 60% of total orders.
Khandelwal stated that these figures reflect the immense potential and opportunities within India’s digital market. CAT has urged the government to implement a comprehensive national e-commerce policy immediately. This policy should enforce strict adherence to Foreign Direct Investment (FDI) regulations, prohibit unfair pricing, regulate illegal shops, ensure transparency in algorithms and seller rankings, protect against illicit trade, hold accountable for counterfeit and substandard goods, provide equal opportunities for small and medium enterprises and retailers, ensure data security, and establish a dedicated grievance redressal system for traders and consumers.
Small retailers, grocery stores, wholesalers, distributors, transporters, and related sectors support millions of families in both urban and rural India. Khandelwal warned that weakening this ecosystem could lead to severe economic and social repercussions.
BC Bhartia, the national president of CAT, accused major e-commerce companies of continuously violating the spirit of India’s FDI policy through indirect inventory ownership, preferred seller arrangements, private labels, and manipulated business structures. What was initially allowed as a market model is rapidly transforming into an inventory-controlled model.
He further noted that practices such as unfair pricing, heavy discounts through cash burn, illegal stockpiling, dark patterns, preferential listing, and the supply of inferior goods have become commonplace. These methods are not only anti-competitive but are gradually eradicating millions of honest traders who have built India’s domestic market through trust and service.
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