(Image source from: The Financial Express)
The Walmart-Flipkart United States Dollar 16-billion deal opposed by about 100 trader organizations stating that it would cause permanent damage to small traders and imperil employment for thousands.
The organizations including Centre of Indian Trade Unions (CITU) and All India Kisan Sabha (AIKS), highlighting the deal's "multifaceted dangers" to the economy released an open statement and called for its nullification.
The associations as well argued that permitting the deal would lead to an American duopoly, Walmart and Amazon in the Indian retail sector and as well lead to control of consumer data these Muti-National Corporations (MNCs).
"Walmart is well-known for its global supply chain, especially of cheap goods from China, which will hurt local manufacturers and suppliers," Chamber of Associations of Maharashtra Industry and Trade (CAMIT) President Mohan Gurnani told reporters here.
"The worst affected will be small brick and mortar retail stores along with SMEs and suppliers of goods including farmers," he added.
Earlier this month, Walmart has declared the acquisition of 77 per cent stake in Flipkart, marking the largest e-commerce deal so far in the country which is registered in Singapore for about USD 16 billion. In India, 100 per cent Foreign Direct Investment (FDI) is allowed in e-commerce for market places.
Currently, 127 associations have come in opposition to the Walmart-Flipkart deal including networks like Fishworkers Forum and National Hawker Federation.
"The company is committed to India for the long term," said Walmart India Chief Corporate Affairs Officer Rajneesh Kumar.
"We have been running Cash and Carry business in India for almost a decade now and helping small kiranas succeed and become modern. We are sourcing locally with more than 95 per cent merchandise coming from within the country including from thousands of small farmers, small suppliers and women-owned businesses," he added.
He said that Walmart has been generating skilled local employment for youth in the country and is as well sourcing billion dollars worth of products that made in India as part of global sourcing office.
He further countering the allegations that the deal would lead to job looses said the transaction will in fact lead to creation of lakhs of new jobs and aid thousands of local suppliers and manufactures access the consumers through Flipkart's marketplace model, where government has allowed 100 per cent FDI.
He emphasized that Flipkart and Walmart will prevail to operate independently.
"Flipkart will continue to run marketplace model and help thousands of small suppliers access the market and serve consumers," he said.
Amitava Guha from CITU said Walmart has a long history of being anti-trade union and disregarding social security laws, and added that even if Walmart and Amazon employ a few thousand more, they are unlikely to neutralize the massive unemployment loss associated with the collapse of the smaller retailers in the country.
By Sowmya Sangam
