MNCs, India Inc put off by Piyush Goyal’s remark on Amazon
NEW DELHI: Top executives at several multinational and Indian companies on Thursday took umbrage at commerce minister Piyush Goyal’s comment that Amazon was not doing any favour to India by announcing a fresh $1 billion investment in the country.
“Until now it used to be a matter of pride to announce such big investments into India,” said the chief executive of an MNC. “But if this is the response companies are going to get from the current dispensation, they will think twice before making or announcing investments here.”
The top executive of another company said this did not “reflect well” on India. “It will only drive foreign investments away,” he said.
On Thursday, while speaking at a security conference in New Delhi, Goyal sounded unimpressed by Amazon’s pledge. “They may have put in a billion dollars but then if they make a loss of a billion dollars every year, then they jolly well have to finance that billion dollars,” Goyal said. “So, it;s not as if they are doing a great favour to India when they invest a billion dollars.”
Several of the business leaders ET talked to said they were offended by the minister’s statement. They spoke on the condition of anonymity.
“This is not Indian culture. Mr Goyal’s choice of words could have been better,” said the chief executive of an Indian company.
Over the months, the go nment has been taking a tough stand on alleged circumventing of Indian ecommerce rules by Amazon and Walmart-owned Flipkart. The chorus ag inst Amazon and Flipkart is also getting louder every day from small traders to politicians.
A CEO of a large consumer-facing company said Goyal was making those comments out of compulsions to please small retailers and traders, who form the backbone of BJP’s ve-bank, as the segment is perceived to be hurt by deep discounting and alleged predatory pricing by Amazon and Flipkart. “The go nment doesn’t want to antagonise the trading community,” he said. “But such statements would send a wrong signal to investors.”
The chief executive of a frontline consumer ronics maker lauded Amazon’s investment plans and said any such capital infusion, especially at a time when the country was battling one of its worst slowdowns in years, should be welcomed. “Statements like these may impact MNC investor sentiments, especially at a time when the go nment is trying to prome Make in India 2.0,” he said.
Piyush Goyal, is super sharp but needs to moderate the way he presents his thoughts. Also timing of what one says and how one says it is critical. It was important to make Bezos feel good during his trip. The man has indeed, changed the world.
India today stands on the Treshold of economic revolution, with the budget in sight such comments were unnecessary , having said this, we now know that corporates have a hidden agenda and that there are no free lunches ever. So it may have been a slip of tongue.... but atleast it's the truth.
Srinivasan G Kailasam
Reliance retail will also not be too different from Amazon and Flipkart.Piyush Goyal could have put things in a better way. With Delhi ions looming large probably Piyushji could be trying to prect BJP's support base.
This Piyush Goyal is supposed to be the best minister in this BJP gt. And this is the way he speaks. Does he not realize that he is a central minister and not a just a 3rd grade politician? Whom is he trying to please? What Amazon has done in India is zing in all aspects and nobody can match the quality of service. There are lakhs who are employed due to Amazon. As far pricing is concerned, there are others Indian ecommerce companies that are giving lower discounts. There are times when we cancelled an order on Amazon because the same item was offered at a lower price from website. As a Minister, Goyal appears to be very narrow minded and shortsighted like his master. They are here to please certain section of vers only.
Yudhvir Singh Chaudhary
And in the context of the context of Climate Change in India and the World context?
goyal is HMV(his master's voice).He must have been instructed from PMO to ridicule jeff bezos on orders of ambanis.
how can a Responsible Minister makes such comments!! Is he trying to favor someone by demoralising a foreign investor? If any co has made any misappropriation the Tax/CLB authorities should take action, a Minister's comment like this will end up in negative feeling to the investors.
GOYAL WANTS TO HELP RELIANCE ECOMMERCE ROLL-OUT HENCE SUCH A FOOLISH UTTERANCE.
Unlike the sycophant India Press which echos BJP line; US press media are independent. Even their President is under impeachment. In India those who speak ag inst BJP/RSS are termed anti-national and hounded by ED, Income Tax, and CBI.
These MNCs know how to make money by investing in develo nations like India ....they are least bothered about these statements .... MNCs worried only on investment and not on statements .... no emotions in business please ....
Goes's two generations have lived on tax payers money nad never won a ion for What ?
Fully agree with the Minister. It is high time that we Indians drop the seless attitude with the Congress have carefully cultivated over the last 70 years. I know there will be enough seless Indians who would want us to welcome MNCS at any cost like we did 300 years ago with Europeans and got colonized and moved india from the largest economy in the world to one of the smallest.India is the largest consumer market. The MNCs are here for making money not to do charity. They should not be allowed to trample on the Indians. Bezoz will have to bend backward to establish Amazon in India, we do not need Amazon in India, he needs us.
WHEN WE HAVE MINISTERS WHO SOMETIMES GO OVERBOARD ND DONT REALIZE THAT WHEN THEY TALK THE WHOLE WORLD WATCHES THIS IS WHAT HAPPENS ONE SIDE UR ECONOMY IS GOING DOWN DAY BY DAY AND WE HAVE THIS KIND OF COMMENTS THEN THEIR PRIORITIES ARE NOT RIGHT.
Goyal is same clown who spoke about Einstein’gravity’ and who tested train speed with plastic water bottles stability!! Another idiot from Baniya Jhumla Party!!! From top to bottom NDA is full of clowns calling themselves politicians
One more nail in the coffin the economy will only go from bad to worse under this clowns
We are talking of top-notch, thick skinned, seasoned, experienced, entreprenuerial risk taking businesspeople. They don't scare easily. If there is a money making opportunity, they will some how work out things. Politicians may posture but money power speaks.
too much hype over a small issue...companies dont invest unless they see profit...doesnt mean they shud be disparaged though...
Points raised by Goyal are Valid. May not have used words wisely.
Really disgusting remark by a knowledgeable Minister Like Piyush Goyal. These remarks may deter all foreign investors coming to a country like India.
No business house will come to India for fun and charity, India is big market and has good pential. Hence I endorse the view of Goyal.
I think Goyal has started to take drugs. His brain and mouth are not in sync. What a naive statement to make even if correct. He is a Cabinet minister.
Bathmavathi Hari Ram
MY VIEW, INDIA IS BIG COUNTRY.FOR AMAZON 1BILLION USD SMALL FIGURE.GOOD THING AMAZON, WALLMART ALL FOREIGN COMPANY,THEY ACCOUNT IS CLEAN THEY PAY TAX AS RULE,IF SMALL MISTAKE WILL AFFECT THEM IN GLOBAL.
i think minister statement was to please traders who are very angry with BJP gt. BJP gt has dest yed the business. But anyway current BJP gt is very harmful for india
This is how you don't create jobs in India. BJP holds masters degree in this area.
zon has dest yed the distribution and retail industry
India should ban all newspapers of the world, all tv channels like CNN, BBC, all foreign companies like Amazon, Microsoft, Apple, Facebook. Only companies which praise without questioning our policies, our ancient cultural heritage should be allowed. Only technology and business models that originates from Vedas should be used. IITs, IIMs established by westerner Nehru should be shut down as they are sl ves of Western Science and business practices.
Piyush Goyal, a well spoken BJP minister has let himself down by making this statement. No matter how strong is the provocation, a matured person avoids using this language. It can certainly turn off other investors. Is BJP suffering from lack of talent in handling economy? It certainly appears so. The ideology brigade must take a backseat and let professionals in finance and commerce handle the steering wheel.
WaPo the terror propaganda tool is another one destroying India.
For a change I support Piyush Goyal. Deep discounting has ruined the markets and customer habits. This is the very habit that killed Indian market in so many segments.
This Go nment should only focus on bridging Wealth Gap. Market forces will take care of itself. Leave Consumers choice of where to buy from to Consumers.
If this investment by Amazon created wealth for the Go nment the Go nment would have welcomed it .