Lok Sabha Question No. 32 (STARRED), answered on 2025-12-02
Subject: e-Commerce Quick Delivery Platforms
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri G Kumar Naik

## 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 02 ND  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  एवं उद्योग मंत्री )श्री पीयूष 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 02 ND  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, interalia, 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 order fulfilment.  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.

*********