New Delhi: The Confederation of All India Traders released a White Paper raising serious concerns over the practices of Quick Commerce i.e. QC, platforms like Blinkit, Instamart, Zepto, Swiggy etc. which are allegedly undermining the foundation of India’s retail economy.

Speaking at the press conference, CAIT Secretary General and Chandni Chowk MP, Praveen Khandelwal, condemned these platforms for misusing Foreign Direct Investment to dominate suppliers, control inventory, and fund predatory pricing – strategies that create an unfair playing field, making it nearly impossible for the 30 million Kirana stores to compete. “These platforms are aggressively pushing small retailers out of the market”, Khandelwal said.

Read in Hindi: भारतीय खुदरा क्षेत्र पर क्विक कॉमर्स प्लेटफॉर्म के प्रभाव पर जताई चिंता

The White Paper provides detailed examples of how QC companies are violating FDI policies and the Competition Act of India. These violations, coupled with a lack of transparency, harm small businesses and distort the retail ecosystem. CAIT urged regulatory bodies to intervene, ensuring that QC platforms adhere to fair practices and protect the interests of small traders.

Khandelwal acknowledged Union Commerce Minister Piyush Goyal’s recent statements, which reflect similar concerns, underscoring that such unfair practices by QC platforms will not be tolerated. Goyal emphasized the importance of fostering alignment between QC platforms and local Kirana stores for faster deliveries without bypassing traditional retail, which is greatly welcomed by the business community of the Country.

The White Paper revealed that QC platforms, backed by over ₹54,000 crores in FDI, have not invested in creating infrastructure or long-term assets. Instead, they use FDI to subsidize operational losses, control supply chains, and offer predatory discounts through a small group of preferred sellers. These practices have allowed QC platforms to capture 25-30 per cent of the market once dominated by Kirana stores, putting many traditional retailers on the brink of closure.

The White Paper notes that QC platforms are also violating the Competition Act, 2002. Their agreements with preferred sellers have restricted market competition and limited consumer choice.

CAIT urged immediate regulatory intervention to hold QC platforms accountable, emphasizing that unchecked growth driven by foreign capital poses a significant threat to India’s small retail ecosystem. Violations of FDI Policy 2020 and FEMA Act 1999 are at the core of QC platforms’ operations, with these platforms using FDI for unsustainable predatory pricing rather than asset creation or infrastructure development.