E-commerce set to transform India's retailers

Subject

E-commerce in India.

Significance

Following nationwide protests from small traders in late 2014, key sections of the Bharatiya Janata Party (BJP) government have demanded that Prime Minister Narendra Modi act against India's rapidly growing e-commerce platforms. Particular targets are the largest e-commerce players, mostly Indian, but including Amazon India, which have benefitted from large infusions of foreign capital and stand accused of side-stepping India's strict limits on foreign investment in multi-brand retail.

Impacts

• Any improvement in transport and distribution infrastructure will boost e-commerce.
• Proliferation of mobile and banking facilities is key to expanding online retail.
• Small traders will oppose the expansion of e-commerce, causing greater political losses for the BJP than any other party.