According to a draft analysis from PwC a global consultants firm, “the new restrictions and rules brought by the Indian government, Will affect the India e-commerce sectors, which as a result could reduce the online sales by USD 46 Billion by 2022.”
These new regulations and restrictions are said to be an attempt of the government under Prime Minister Narendra Modi, to give small retailers and traders a platform to earn due to their complaints of Global Online transactions disrupting their business.
In a separate analysis conducted by PwC, a prediction has depicted that online retail sales growth, tax collections, and job creation would get affected negatively if the companies comply with the new policy.
“Since this analysis has not been made public, assumptions or conclusions about the aftermath of this policy are still unclear. By this policy, sales will still be growing but at a less robust rate than before.”
The analysis also observed that by 2022, nearly to 1.1 million jobs would get affected and also see a reduction in tax collection by USD 6 billion.
This new e-commerce policy is the latest flashpoint between India and USA. Alongside, Amazon has committed to invest USD 5.5 billion in India while Wal-Mart has also spent $16 billion last year, to acquire Flipkart and also planned to invest USD 500 million (approx RS 3000 crore) to open 47 more B2B stores in India by the end of 2022.
Which could lead to significant losses, and the government has blindsided the foreign investors by this policy.―Tech Graph