Written By PEERZADA ABRAR<\/p>\n
The government\u2019s move, tightening norms for online retailers such as Amazon and Flipkart, is seen as a strategy to give large and small local retailers and traders in the country a leg up, ahead of the general elections scheduled for 2019.
\n\nThe norms, which are seen as helping protect domestic players, would not only help online marketplace players such as Snapdeal, and Paytm Mall but also large local companies such as Reliance that are eyeing a share of the e-commerce market in the country, according to industry watchers.
\n\n\u201cThere is a realisation in the government that after demonetisation and GST [Goods and Services Tax], they needed to give something to the traders,\u201d said an industry expert who did not wish to be quoted.
\n\n\u2018Intense lobbying\u2019<\/b>
\n\nAnother expert said a lot of lobbying was being done by large local retailers against big e-commerce companies in the country. \u201cThose are the ones which are going to gain from this,\u201d said the expert also not wishing to be quoted.
\n\nDevangshu Dutta, CEO of retail consultancy Third Eyesight, said with the general elections coming up, the government could not have ignored the demands of domestic retailers. \u201cThis includes red flags highlighting that e-commerce players have grown on the back of aggressive discounting. It is the job of any democratically elected government anywhere in the world to look at domestic interests first,\u201d he said.
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