Union Finance Minister Nirmala Sitharaman on Friday said quick commerce represents a “one-of-a-kind innovation” that can be leveraged to brand India as a destination for inventive solutions to modern and urban needs, helping such startups become some of the biggest players in the international tech business space.
“India’s businesses, particularly the startups, especially quick commerce, for instance, are truly a one-of-a-kind innovation that only India has. But that’s not to say the brick-and-mortar retail is not doing fine. They are being challenged, I recognise that. We need to handhold and support our brick-and-mortar retail. No doubt. But use this (quick commerce) to brand India as a destination of innovative solutions to modern, urban needs. This will serve as an incentive to scale up internationally, catapulting Indian enterprises with a strong Bharatiya identity to become some of the biggest players in the international tech business space,” she said at the India Ideas Conclave 2024 in Bengaluru.
Sitharaman’s remarks come at a time when there is a heated debate about the effect of the swift growth of quick commerce platforms on traditional brick-and-mortar retail stores in India.
On November 19, Commerce and Industry Minister Piyush Goyal urged e-commerce companies to adhere to the laws of India, emphasising both their letter and spirit. His statement referred to the regulations concerning foreign direct investment (FDI) in the country.
Recently, the Confederation of All India Traders (CAIT) published a white paper accusing quick commerce platforms like Blinkit, Instamart, and Zepto of undermining traditional kirana stores.
Sitharaman also suggested that Prasar Bharati bolster its existing streaming service to develop a Netflix-like over-the-top platform with well-curated podcasts from radio content and film and TV shows that are collector’s pride. “The subtitling can be world-class to cater to an international audience,” she said.
Speaking at the event, Goyal said India was on track to become the third-largest economy in the world, with a stable currency and substantial forex reserves, and is prepared to meet global challenges.
The Indian currency has held its position as one of the least volatile among major currencies, and the forex reserves stand at about $675 billion — among the five largest in the world, the minister said.
Goyal also emphasised that research and innovation remain key pillars in India’s journey towards Viksit Bharat and urged industries to leverage the fund. “To encourage private sector participation in deep tech and sunrise domains, the Government of India has announced a fund of Rs 1 trillion, which will provide long-term financing to promote innovation. I urge industries to leverage this fund to scale up innovation in critical areas, in public-private mode, with academia partnerships,” he added.