India’s vast retail community has intensified its demand for sweeping policy reforms to regulate the growing influence of major e-commerce platforms, warning that unchecked online trade practices are placing millions of traditional businesses under severe financial pressure. The Federation of All India Vyapar Mandal (FAIVM), representing retail and wholesale traders across the country, has submitted a memorandum to the Prime Minister, the Union Finance Minister, and the Union Commerce Minister, seeking an India-specific regulatory framework to ensure fair competition between digital marketplaces and conventional retailers. FAIVM National President Jayendra Tanna and National General Secretary CA R. K. Gaur (Member, National Trade Welfare Board, Government of India) have urged the Centre to take immediate policy action to safeguard India’s retail ecosystem.
The traders’ body has alleged that longstanding issues such as predatory pricing, aggressive discounting, preferential treatment for selected sellers, and unfair market practices have steadily tilted the competitive landscape in favour of dominant online platforms. While acknowledging that digital commerce is an essential pillar of India’s economic future, FAIVM has maintained that technological advancement should not come at the expense of fair market access for millions of neighbourhood retailers who continue to drive employment and local economic activity across the country.
Adding fresh urgency to its appeal, FAIVM has pointed to recent global developments, particularly the European Union’s decision to introduce a fixed customs duty on low-value imported parcels from July 1, 2026. According to the organisation, the move demonstrates how leading economies are tightening oversight of cross-border online trade to safeguard domestic industries, strengthen customs compliance, and boost government revenue. Rather than replicating international models, FAIVM has urged India to examine global best practices and develop a regulatory framework tailored to the country’s unique retail ecosystem and economic priorities.
The memorandum proposes the formation of a high-level Expert Committee comprising representatives from the Ministries of Finance, Commerce and Industry, Consumer Affairs, GST authorities, economists, technology experts, and trade associations. The proposed panel would evaluate policy options, including an appropriate regulatory or levy mechanism for online transactions, stronger tax compliance measures, enhanced consumer protection standards, and safeguards that promote transparent competition without discouraging innovation in digital commerce.
FAIVM believes such reforms could deliver substantial economic benefits by creating a level playing field for traditional retailers, improving tax compliance, reducing revenue leakage, generating additional government revenue, and protecting employment across India’s extensive retail network. The organisation also argues that balanced regulation would reinforce flagship national initiatives such as Vocal for Local and Atmanirbhar Bharat while ensuring that digital businesses and offline enterprises operate under the same competitive standards.
Calling for immediate government intervention, FAIVM has clarified that its representation is not directed against technology or e-commerce itself but against what it describes as unequal competitive conditions. The organisation has urged the Centre to initiate a comprehensive review of existing policies and develop an India-centric regulatory and taxation framework in consultation with all stakeholders. National President Jayendra Tanna and National General Secretary CA R. K. Gaur (Member, National Trade Welfare Board, Government of India) have expressed confidence that a balanced regulatory framework will promote fair competition while protecting the interests of millions of retailers and wholesalers across the country. As the debate over the future of India’s retail sector gains momentum, the memorandum is expected to intensify calls for stronger oversight of the country’s rapidly expanding e-commerce industry and its long-term impact on millions of small businesses.
FOR MORE DETAILS president.faivm@gmail.com
