The Confederation of All India Traders is asking the government to ban pending sales events to be held by e-commerce rivals Amazon and Flipkart.
The confederation, which represents 500,000 merchants and traders within the country, claims that the heavily discounted online sales violate India’s restrictions on online retail for foreign firms.
“By offering deep discounts ranging from 10 per cent to 80 per cent on their e-commerce portals, these companies are clearly influencing the prices and create an uneven level playing field which is in direct contravention of the policy,” read a letter from the retailer body to the federal trade minister.
Both online firms have defended the sales festivals, claiming they offer best value for money to consumers and help small-scale retailers reach broader markets.
India forbids foreign investors from direct involvement in inventory-driven models of e-commerce in order to protect the country’s retailers who are unable to compete on price.