Parliament Question: e-Commerce Quick Delivery Platforms

GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE LOK SABHA STARRED QUESTION NO. 32. TO BE ANSWERED ON TUESDAY, THE 02ND DECEMBER, 2025. E-COMMERCE QUICK DELIVERY PLATFORMS *32. SHRI G KUMAR NAIK: Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री (a) whether the Government is aware of the impact of the rapid growth of e-commerce quick delivery platforms on traditional kirana shops, particularly regarding pricing and competition; (b) if so, the details thereof along with the measures being taken to ensure fair trade practices and prevent predatory pricing, creating a level playing field between e-commerce platforms and small retailers, if not, the reasons therefor; (c) whether the Government is considering regulatory frameworks to protect the interests of kirana shops and promote their integration with e-commerce platforms for mutual benefit, if so, the details thereof; and (d) the support mechanisms being offered by the Government to help kirana shops modernize, improve their operations and remain competitive in the evolving digital economy? ANSWER वाणिज्य एव ं उद्योग मत्रं ी )श्री पीयषू गोयल( THE MINISTER OF COMMERCE & INDUSTRY (SHRI PIYUSH GOYAL) (a) to (d): A statement is laid on the table of the House. *********STATEMENT REFERRED TO IN REPLY TO PARTS (a) to (d) OF LOK SABHA STARRED QUESTION NO. 32 FOR ANSWER ON 02ND DECEMBER 2025. (a) to (d): Pricing and discounting of products are business decisions driven by market forces. However, imposition of unfair or discriminatory prices (including predatory pricing) by a dominant enterprise or group is prohibited under provisions of Section 4 of the Competition Act, 2002. The Competition Commission of India (CCI) established under the said Act decides matters of anti-competitive practices, including, inter- alia, predatory pricing, on a reference by the aggrieved party. Action is taken as and when such allegations of anomalies and violations of existing laws are brought to the notice of the Government. Additionally, the Foreign Direct Investment (FDI) policy on e-commerce and retail sectors reflects the Government's intent to safeguard local business interests. Para 5.2.15.2 of the FDI Policy on e-commerce [as amended vide Press Note 2 (2018 Series) dated 26.12.2018 issued by the Department for Promotion of Industry and Internal Trade (DPIIT)], prohibits FDI in inventory based models of e-commerce, where the inventory of goods and services is owned by the e-commerce entity and sold directly to consumers. To safeguard and promote local business interests, the FDI Policy for Single Brand Retail Trade (SBRT) mandates that for foreign investment beyond 51%, 30% of the value of goods purchased should be sourced from India, preferably from Micro, Small, and Medium Enterprises (MSMEs), village and cottage industries, artisans, and craftsmen across all sectors. Similarly, the FDI Policy on Multi-Brand Retail Trading (MBRT) outlines several conditions to ensure that the benefits of FDI in the sector create commensurate forward and backward linkages. The Government has been focusing on protecting the interests of small retailers and traditional kirana stores while safeguarding local business interests, thereby promoting fair competition. Various measures in the form of Acts, Rules, and Policies have been put in place to ensure fair trade practices and a level playing field and act against practicing anti-competitive conducts by e-commerce platforms anti-competitive practices by e-commerce platforms. Some of the Acts applicable to e-Commerce Sector are Consumer Protection Act, 2019; Consumer Protection (E- commerce) Rules, 2020; Competition, Act, 2002; Central Goods and Services (CGST) Act, 2017; Information Technology Act, 2000; Payment and Settlement Systems Act, 2007; Income Tax Act, 1961; Companies Act, 2013; Copyright Act, 1957 etc. FDI policy and Foreign Exchange Management Act, 1999 contain provisions related to Foreign Direct Investment (FDI) in e-Commerce Sector. The Competition Act, 2002 mandates the Competition Commission of India to prevent practices having adverse effect on competition, to promote and sustain competition in markets, to protect the interests of consumers and to ensure freedom of trade carried on by other participants in markets, in India. The CCI looks into the matter relating to anti-competitive agreements and abuse of dominance by enterprises in all the sectors of the economy. In addition to the already existing comprehensive legislative framework mentioned above, the Department for Promotion of Industry and Internal Trade (DPIIT) has also pioneered the initiative of Open Network for Digital Commerce (ONDC). The initiative is aimed at promoting open networks for all aspects of exchange of goods and services over digital or electronic networks. ONDC protocols standardize operations like cataloguing, inventory management, order management and orderfulfilment. Thus, small and medium sized businesses can use any ONDC compatible applications instead of being governed by specific platform centric policies. This provides multiple options for them to be discoverable over network and conduct business. It also encourages easy adoption of digital means by those currently not on digital commerce networks. ONDC is taking several measures to support kirana shops in modernising their operations and remaining competitive in the digital economy. The key interventions are as under: (A) Modernisation of Kirana Shops i. Provision of simple and easy-to-use mobile applications to support digitisation for procurement as well as selling. ii. Enablement of digital cataloguing, billing, inventory management and digital storefronts for retailers. iii. Capacity-building and training support for adoption of digital tools and technologies. (B) Improvement of Operational Efficiency i. Access to on-demand digital logistics services to improve delivery serviceability in neighbourhood and hyperlocal areas. ii. Support for faster stock replenishment through tech-enabled supply chain solutions, minimising stock-outs. iii. Provision of data-driven tools for demand forecasting, recommended stock lists, and price comparison. (C) Enabling Competitiveness in the Digital Economy i. Digital linkages between kirana shops and manufacturers, brands, wholesalers and distributors to ensure ease of ordering and improved margins. ii. Transparent visibility of pricing, brand schemes and promotional offers to level the playing field with organised retail. iii. Training on digital marketing, customer engagement and product discovery to enable sustained growth. With the above interventions, ONDC is providing critical support to the kiranas and general trade participants in digitising their operations across the value chain, resolving digital inventory challenges, enabling transparent pricing and better control, and providing access to hyperlocal logistics so they can successfully compete and grow in e-commerce. Over the past 3 years, ONDC has supported over 3,500 shops and Kirana stores to complete 4.5 Lakh+ transactions on the network. *********