The Rashtriya Swyamasevak Sangh (RSS) is reportedly in favor of banning e-tailers like Amazon, eBay and Flipkart in India as the economic wing of the saffron outfit thinks that such ventures are a threat to Prime Minister Narendra Modi’s ‘Make in India’ scheme, reports Deccan Chronicle.
According to reports, leaders of the RSS-affiliate Swadeshi Jagran Manch think that foreign sites like Amazon are “killing domestic players in the Indian market”. It even wants a ban on Indian e-tailers such as Flipkart, which have high foreign fund infusion. A top SJM functionary said that FDI in e-commerce should be prohibited by law. Leaders of the outfit had reportedly met the finance minister on the issue to ask him to “plug loopholes in the law.”
In the last few years, Indian e-commerce companies have attracted huge amount of investments. According to data from Venture Intelligence, a research service focused on private equity, and venture capital in India, $273 million was pumped into e-commerce ventures in 2012, $540 million in 2013 and $240 million through April 2014.
Indian laws do not allow FDI in e-commerce sites that sell products to customers directly, but they allow FDI in market places that link sellers and buyers.
"Swadeshi Jagran Manch demands that the government comes out with a white paper on FDI," its national convener Ashwani Mahajan told PTI.
"FDI is not a panacea of all ills. It is not a solution for all problems. FDI has done bad and good to the economy. There have been more outflows than inflows of FDI. In 2013-14 alone while there has been 21.5 billion USD inflows, there has been an outflow of 34.4 billion USD," Mahajan said.
Related Tags:The Rashtriya Swyamasevak Sangh, banning e-tailers, RSS-affiliate Swadeshi Jagran, FDI in e-commerce