The US-based retail giant Walmart has recently acquired a major stake in Indian e-retailer Flipkart by investing 16 billion US Dollar. This deal astonished everyone in the Industry. In India, the leading advocate for small traders and retail business, The Confederation of All India Traders (CAIT) has alleged against this deal to a statutory body of Government in India, Competition Commission of India (CCI).
CAIT claimed that the Flipkart-Walmart deal would take a toll on jobs, lead to uneven playing field and turn out to be a bad dream for the retailers in India. It also professed that traders were not consulted by the Government despite raising concerns with the Commerce Ministry on the deal. The association also asked the Commerce Minister Suresh Prabhu about the initiative taken by the Government to scrutinise the deal.
CAIT states that the Flipkart-Walmart deal is related to FDI policy, cyber security and apprehension of using e-commerce for entering retail trade by circumventing the law, etc.
Interestingly, Walmart has approached CCI for the final approval over acquisition of the deal.
Moreover, Walmart CEO Doug McMillon claims, “The investment will benefit India by providing quality, affordable goods for customers, while creating new skilled jobs and fresh opportunities for small suppliers, farmers and women entrepreneurs.” McMillon has already affirmed that the deal will create 10 million jobs in India.
– Apparel and Textile News, Apparel Talk, Indian Apparel
