(MENAFN- KNN India) New Delhi, Dec 2 (KNN) Commerce and Industry Minister Piyush Goyal, in a written reply in the Lok Sabha on Tuesday, highlighted the government's measures to protect local businesses and ensure fair competition in the e-commerce and retail sectors.

He stated that while pricing and discounting are generally market-driven, predatory or discriminatory pricing by dominant enterprises is prohibited under Section 4 of the Competition Act, 2002, and the Competition Commission of India (CCI) is empowered to take action against such practices.

The minister highlighted that the government's Foreign Direct Investment (FDI) policy in e-commerce and retail sectors is designed to protect local business interests.

Inventory-based e-commerce models remain prohibited for FDI, while single-brand and multi-brand retail trade policies mandate minimum sourcing from Indian manufacturers, including MSMEs, artisans, and cottage industries, to ensure economic linkages and benefit local enterprises.

To further strengthen the competitiveness of small retailers, the government has implemented legislative and regulatory frameworks including the Consumer Protection Act, 2019, Consumer Protection (E-Commerce) Rules, 2020, Competition Act, 2002, CGST Act, 2017, IT Act, 2000, and others, along with FDI guidelines.

These measures aim to ensure fair trade practices and prevent anti-competitive conduct by e-commerce platforms.

Goyal also detailed the government's initiative, the Open Network for Digital Commerce (ONDC), which aims to provide an open, interoperable digital commerce network accessible to all businesses. ONDC enables small and medium enterprises, particularly kirana stores, to digitise operations, standardise cataloguing, billing, inventory management, and order fulfilment, and participate in digital commerce without being tied to specific platforms.

Key ONDC interventions for kirana stores focus on three main areas.

In terms of modernisation, stores are provided with user-friendly mobile applications for procurement and sales, digital catalogues, billing and inventory management, along with training to adopt these digital tools.

To enhance operational efficiency, kirana stores gain access to on-demand digital logistics, tech-enabled supply chain support for faster stock replenishment, and data-driven tools for demand forecasting and price comparison.

For improving competitiveness, the interventions include digital linkages with manufacturers, wholesalers, and distributors, transparent pricing and promotional visibility, as well as training in digital marketing and customer engagement.

According to the minister, over the past three years, ONDC has assisted more than 3,500 shops and kirana stores, facilitating over 4.5 lakh transactions through the network.

(KNN Bureau)

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