CAIT criticises Gujarat government for Amazon pact

By

Isabelle Crossley

Published
Sep 8, 2021

The Confederation of All India Traders has voiced its criticism of the Gujarat state government for signing an agreement with Amazon India, accusing the local authority of supporting anti-competitive practices.

“Beside the traders of Gujarat, the traders across the country felt cheated at the hands of the Gujarat government for shaking hands with a known law offender company,” CAIT said in a statement on Tuesday, the Press Trust of India reported. “CAIT will oppose such MOU [memorandum of understanding].”
 
Amazon announced at the beginning of the week that it has partnered with Gujarat’s Industries and Mines Department with the aim of boosting e-commerce exports in the state and thus boosting the state’s economy. The agreement will see Amazon train and onboard micro, small, and medium enterprises across Gujarat and facilitate them selling their ‘Made in India’ products on Amazon’s e-commerce platform. 

The MOU is designed to enable them to reach customers in over 200 countries and territories. However, CAIT argues that encouraging small traders to join Amazon will actually harm local businesses.
 
CAIT has been heavily critical of both Amazon India and Walmart-owned Flipkart, two US-owned businesses, for allegedly flouting foreign direct investment regulations. The traders’ body has held protests across India against the two businesses, run multi-media campaigns, and promoted boycotts of both businesses.