Flipkart deal in line with FDI policy

New Delhi, July 2: US retail giant Walmart on Monday defended its move to acquire Flipkart, saying it is in line with the government's FDI policy, amid protests by traders against the deal.

The acquisition will boost manufacturing in India by providing thousands of local suppliers access to consumers through the marketplace model, the company said in a statement.

The Confederation of All India Traders ( CAIT), a body of traders, on Monday organised mass protests in different parts of the country against the Walmart- Flipkart deal.

CAIT has been demanding the government to scrap the deal and constitute a regulatory authority to regulate and monitor the e- commerce market.

“This partnership ( with Flipkart) will support SME suppliers, farmers in the country to get access to the market through this platform and boost local manufacturing in India,” Walmart said.

The company further said, “We believe the combined capabilities of Flipkart and Walmart will create India’s leading e- commerce platform. This 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.”

CAIT secretary- general Praveen Khandelwal, however, strongly objected to the merger of two companies alleging that Walmart, which is the world’s largest retailer, will create an “unfair competition and uneven level playing field” and “will indulge in predatory pricing, deep discounts and loss funding”.

We believe the combined capabilities of Flipkart and Walmart will create India’s leading e- commerce platform. This will benefit India by providing quality, affordable goods for customers, while creating new skilled jobs and fresh opportunities. — WALMART