The Finance Ministry on Thursday extolled the role of e-commerce players in generating jobs and enhancing consumer welfare over the past decade, citing the same study that Commerce and Industry Minister Piyush Goyal had “completely” dissociated from last month as he flagged predatory business practices of e-tailers like Amazon that were hurting small retail stores.

The Ministry’s economic review for August noted that India’s “online shopping scene has expanded significantly” over the past decade, “playing a vital role in the country’s retail environment”, citing the study released by the Pahle India Foundation (PIF) in partnership with People Research in India’s Consumer Economy (PRICE).

“The e-commerce sector has witnessed a significant increase in job opportunities. The survey reveals a 42% net rise in management positions among online sellers, reflecting the growing complexity of e-commerce operations. Other roles, such as marketing, sales, and customer support, have also expanded, all essential for maintaining a competitive edge in the digital marketplace,” the Ministry noted.

“To maintain the positive employment impact of e-commerce, addressing the skills gap is crucial. Investing in vocational training programs focused on digital skills, like social media management and data analysis, could help workers adapt to the changing job market,” the Ministry concluded.

On August 21, speaking at the launch of the PIF-PRICE study, Mr. Goyal had signalled its findings that e-commerce did not pose a significant risk to job opportunities in India were driven by the “urge to show” that there has not been an impact.

“I do not agree with any of these findings,” he had said. A day later, the Minister, who had also red-flagged possible violations of the Foreign Direct Investment (FDI) norms by players, had conveyed that he was not against e-commerce per se but wanted players to ensure fair play and honesty in their business practices.

“…Even yesterday, I said online has tremendous benefits. We recognize that but if there is a law of the land that FDI is allowed in online services only when you do business to business, it’s a well thought of strategy. The idea is that our small retailers also can survive and coexist with online services, and unfair competition doesn’t kill them,” he had said, reiterating concerns about the e-tailers’ impact on 100 million small retailers.

The Finance Ministry’s review, compiled by the economic division, said the use of digital technologies had increased sales and profitability of online sellers, with 50% reporting higher sales and 42% noting improved profits.

For consumers, the Ministry noted that e-commerce platforms cater to a wide array of demands, “from electronics to daily necessities, offering the convenience that sets online shopping apart.”

The Ministry noted that two of six metrics used by the study to measure the effect of e-commerce on consumer well-being, received lower scores from consumers — cost-effectiveness and grievance redressal. This, it said, indicates that consumers still struggle to resolve issues and find the best deals.

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