The Government of India, in its view, is carefully observing e-commerce giants like Amazon and Flipkart after CAIT alleged the online platforms were using unethical practices to lure traffic to their websites.
Indian Commerce Minister Piyush Goyal, during a meeting with CAIT's General Secretary Praveen Khandelwal, has categorically said that under no circumstances would the government allow any unethical business on e-commerce platforms, the CAIT stated on Thursday.
In response to a written petition filed by the CAIT, that advocates small traders and businesses in India, the Rajasthan High Court issued notices to Amazon and Flipkart for engaging in unethical trade practices.
In its petition, the CAIT recently highlighted that e-commerce giants have repeatedly indulged in practices that converted their marketplaces into inventory-based models, in clear violation of the country's Foreign Direct Investment (FDI) policy.
In their defence, Amazon and Flipkart stated it was not their platforms, but merchants selling their products through their websites that offer the discounts.
"Expressing deep concern over the issue, the Commerce Minister has assured us the Government is committed to safeguard and protect the interests of the traders who are the lifeline of the economy ..." said Khandelwal.
The CAIT also noted that the Commerce Minister had urged traders in India to upgrade and accept digitalisation that would result in the exponential growth of their business.