Lok Sabha Question No. 2786 (UNSTARRED), answered on 2026-03-10
Subject: Expansion of Quick Commerce Delivery Platform
Ministry: COMMERCE AND INDUSTRY
Asked by: Dr. Amol Ramsing Kolhe, Shri Mohite Patil Dhairyasheel Rajsinh, Smt. Supriya Sule, Shri Sanjay Dina Patil, Prof. Varsha Eknath Gaikwad, Shri Bhaskar Murlidhar Bhagare

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 2786.

TO BE ANSWERED ON TUESDAY, THE 10 TH  MARCH, 2026.

## EXPANSION OF QUICK COMMERCE DELIVERY PLATFORM

## 2786.  SHRI SANJAY DINA PATIL:

SHRI MOHITE PATIL DHAIRYASHEEL RAJSINH:

SMT. SUPRIYA SULE:

DR. AMOL RAMSING KOLHE:

PROF. VARSHA EKNATH GAIKWAD:

SHRI BHASKAR MURLIDHAR BHAGARE:

## 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 expansion of ecommerce and quick-commerce delivery platforms on traditional kirana shops in Maharashtra, particularly with regard to deep discounting, pricing practices and unfair competition;
- (b) if so, whether any study or assessment has been conducted on their impact on small retailers, employment and local supply chains in the State and if so, the details thereof;
- (c) whether  the  Government  proposes  to  take  regulatory  measures  under  ecommerce rules, FDI policy or the Competition Act to prevent predatory pricing and market concentration and ensure a level playing field,  if  so, the  details thereof;
- (d) the support mechanisms being implemented or proposed to help kirana shops in Maharashtra modernize, digitally integrate and remain competitive; and
- (e) the timeline and monitoring mechanism proposed to ensure effective implementation of these measures in the State?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a) to (b): 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 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.

- (c): The Government has been focusing on protecting the interests of small retailers and  traditional  kirana  stores,  safeguarding  local  business  interests  and 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  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 was enacted to prevent practices having adverse effects  on  competition,  to  promote  and  sustain  competition  in  markets,  to protect interests of consumers and to ensure freedom of trade carried on by other participants in the markets. The Act prohibits anti-competitive agreements (Section 3), abuse of dominant position (Section 4) and provides for regulation of combinations i.e, mergers and acquisitions (Section 5& 6). The Competition Commission of India (CCI) has been established under the Act to enforce these provisions and empowers CCI to issue appropriate remedies for such anti-competitive behavior.

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 MultiBrand Retail Trading  (MBRT) outlines several conditions to ensure that the benefits of FDI in the sector create commensurate forward and  backward  linkages.  Furthermore,  to  curb  opportunistic  takeovers  or acquisitions of Indian companies, amendments were made to the FDI policy via Press Note 3 (2020 Series). According to these amendments, an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the Government route.

- (d) & (e): The  Department  for  Promotion  of  Industry  and  Internal  Trade  (DPIIT)  has pioneered the initiative of Open Network for Digital Commerce (ONDC). The initiative aims 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 order  fulfilment.  Small  and  medium sized businesses can use any ONDC compatible applications instead of being governed  by specific platform centric policies. This provides multiple options to 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. The open network model enables scalable, cost-effective and inclusive digital market access for small retailers.

Training,  handholding  and  onboarding  support  are  being  provided  through network  participants,  industry  associations  and  State-level  engagements  to build digital capacity among  kirana  stores.  ONDC  also  provides  access  to on-demand digital logistics services, improving hyperlocal delivery capabilities in  neighbourhood  areas.  The  network  follows  a  technology-driven,  marketbased approach that empowers kirana stores,  MSMEs, SHGs, farmers and artisans to participate effectively in digital commerce while ensuring fair and non-discriminatory access without dependence on any single platform.

ONDC  has  entered  into  an  MOU  with  Directorate  of  Industries,  Govt  of Maharashtra. There are 28196 sellers from Maharashtra registered with ONDC with 6,934,848 transactions carried out till date.

The  Government  continues  to  strengthen  the  ONDC  ecosystem  through targeted  initiatives to enhance digital capabilities and market access for kirana stores, including those in Maharashtra. Implementation of the above measures is an ongoing process. For regular  review  of  the  progress  and  functioning  of the  network  and  its  initiatives, ONDC has put in place dedicated governance and  monitoring  mechanisms,  including  a  Board  of  Directors  and  various Committees.

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