Highlighting that the online commerce companies are manipulating markets, violating laws and systematically dismantling small retailers for profit, putting the traditional retail sector under siege, the industry bodies have urged the government to impose a luxury tax under Goods and Services Tax (GST) on the purchase of goods from ecommerce platforms.
Taking aim at Amazon and Flipkart, Chairman of the All India Mobile Retailers Association (AIMRA), called them repeat offenders who have exploited India’s legal loopholes for over a decade.
“Using a maze of group entities and preferred sellers, these companies bypass foreign direct investment (FDI) restrictions to dominate every layer of the supply chain while sidelining Indian retailers,” he highlighting at the national conclave on ‘cruel face of quick commerce and ecommerce’ held at the Constitution Club, New Delhi.
Demanding immediate enforcement of FDI and ecommerce policies and rolling out of ecommerce rules under the Consumer Protection Act, the Confederation of All India Traders (Cait), in association with All India Consumer Products Distributors Federation (AICPDF), Organised Retailers Association (ORA) and AIMRA, sounded a nationwide alarm against the unchecked and unethical operations of both foreign-funded ecommerce giants and the Indian quick commerce platforms.
Criticising the aggressive algorithm-driven consumer manipulation and the reckless use of FDI for predatory pricing, Secretary General of Cait, accused these platforms of treating India like a banana republic where laws are secondary to business ambitions.
“Instead of creating infrastructure or supporting the retail economy, FDI is being used to finance losses, destroy small shops, and capture control over the supply chain,” he said. The Secretary General added that it is not trade anymore, it is a race for valuations and the casualties are India’s small retailers.
Nationwide Campaign From 1 May
The National President of Cait, declared a full-scale nationwide campaign beginning 1st May 2025 to resist this digital colonisation of retail. “We will not remain silent. Local trade associations in every city and state will rise to defend India’s retail democracy,” he said, informing that a strategic roadmap will be released at Cait’s National Governing Council Meeting in Bhubaneswar on 25 to 26 April.
Concerns Over Quick Commerce
Alleging that platforms like Zepto, Blinkit and Instamart have received over Rs 54,000 crore in FDI, yet only 2.5 per cent has gone into infrastructure, AICPDF’s President, claimed that the majority has been diverted towards loss funding, subsidised services for a few preferred sellers,
“They are not marketplaces, they are inventory-led companies operating in disguise,” he warned, while adding that this has built a closed ecosystem that locks out independent traders and deceives consumers.
The conclave concluded with the adoption of a strong Policy Resolution demanding the prohibition of inventory-led operations by platforms posing as marketplace and the formation of an independent regulatory body for digital commerce. It also called for mandatory transparency in algorithms, pricing, and seller selection as well as the protection and promotion of small Kirana stores and offline trade.
