Ecommerce Scam in India #startup

BIg Scam in India

The ecommerce companies are being used as backdoor entities for FDI with out Govt approval .

Majority stake in these multi brand retail shops is maintained by foreign venture and private equity which may be violation of 51% equity required by Indian entities

Now the game there is simple use venture money to undercut small retailer by selling below the cost price in many case and wiping out competition . The plan is to purge all the small mom and pop shops by 2020 and create big chain stores or ecommerce sites

This works well for few but
the problem is that in country like India this creates a socioeconomic problem which can be appalling as it grows bigger .


The government should enforce regulation as well as the business should move more towards localization rather than big brand sale through e Commerce

Anyway the consumer is benefiting from this jugglary which is good thing for middle class in India