The Directorate General of Foreign Trade (DGFT) has come under fire from the Confederation of All India Traders (CAIT) for encouraging e-commerce companies to take advantage of district-specific items and exports from the nation.
Although the international trade policy formulator notion was deemed “good,” it was pointed out that small firms and manufacturers situated in the districts would suffer as a result. It is anticipated that these e-commerce giants would monopolize the district’s tiny enterprises for their own benefit, according to a media release from CAIT.
While sharply criticizing the DGFT, CAIT National President BC Bhartia and Secretary General Praveen Khandelwal stated that this action would be counterproductive and strengthen the “unholy arms” of e-commerce companies that are engaging in various malpractices, given the lack of any e-commerce policies or regulations.
The national trade confederation said that backing the DGFT would provide credibility to their business model, which is being seriously questioned by the CCI and other investigating bodies.
The Directorate General of Foreign Trade (DGFT) is working with different e-commerce operators to utilize the district-level items in a major step to support MSMEs and increase e-commerce exports.
Earlier this week, DGFT and Amazon India inked a memorandum of understanding (MoU), marking the first instance of such cooperation with several e-commerce platforms. Under the terms of this MoU, Amazon and the DGFT will collaborate to provide workshops, training, and capacity-building sessions for MSMEs in the districts that the DGFT has designated.
The collaboration fits in with the Foreign Trade Policy 2023, which highlights e-commerce as a key area of concentration for increasing India’s exports. With the primary goal of advancing India’s exports, the DGFT is in charge of developing and carrying out the foreign trade strategy.
In addition, Bhartia and Khandelwal of CAIT said that although they were not against using e-commerce to boost exports, they were unsure whether such organizations were operating legally.
According to CAIT, the DGFT’s action will provide e-commerce companies with all chances and data, allowing them to take use of them to further their own agendas.
Before issuing such a statement, Bhartia and Khandelwal alleged that the DGFT had not spoken with any relevant parties or discussed the matter with its Board of Trade. As to the media announcement released by CAIT, Khandelwal has a membership in the Board of Trade.
The confederation went on to say in its statement that it has requested Union Commerce Minister Piyush Goyal to “immediately” lay out regulations and an e-commerce strategy.