New Delhi, Jan 17: At a time when economists and industrialists are praising the Narendra Modi government for easing foreign investment rules in India to make it easier for investors to enter the market, the economic wing of the RSS has reportedly asked the government to ban e-commerce firms such as Amazon, eBay and Flipkart.
The SJM has reportedly claimed that foreign e-commerce firms such as Amazon and eBay are "killing domestic players in the Indian market". It has asked the government to ban not only these, but also Indian players such as Flipkart which have high foreign fund infusion.
"We are of the opinion that FDI in e-commerce should be prohibited by law. Though we do not allow FDI in e-commerce sites, they circumvent the law to sell their product in the country.
Even Indian e-commerce firms like Flipkart have turned to be foreign now with funding from outside. There is a lacuna in the law and this cannot be allowed. We have asked the Finance Minister to plug loopholes in the law," Ashwani Mahajan, SJM national convener, was quoted by The Indian Express report as saying.
In a report on e-commerce, in Nov 2014, Motilal Oswal Securities said that the $11-billion e-commerce market in India is expected to grow 37 per cent to reach $20 billion by the end of this year.
The government, however, does not have any data on the e-commerce industry.