The Flipkart-Walmart deal is in its final stages. While these firms ready to set the global records, Indian trader organizations are opposing the deal.
Over 100 trader organizations believe that the $16-billion Walmart-Flipkart deal will leave irreversible damage to small traders. The organizations have said that it will endanger thousands of existing jobs in the country. These associations, including Center of Indian Trades (CITU) and Indian Kisan Sabha (AIKS), have released a statement.
The associations believe that the deal’s ‘multifaceted dangers’ to the economy will create a long-term impact. The associations have called for nullification of this deal. These industry bodies have argued that allowing this deal to go through will create an American duopoly (Walmart and Amazon) in India’s retail sector. It is also likely to lead to control of consumer data by these MNCs.
Mohan Gurnani, the President of Chamber of Associations of Maharashtra Industry and Trade (CAMIT) said, “Walmart is well-known for its global supply chain, especially of cheap goods China, which will hurt local manufacturers and suppliers. The worst affected will be small brick and mortar retail stores along with SMEs and suppliers of goods including farmers.”
Over 127 groups have voiced their opposition in the Walmart-Flipkart deal. The other signatories in opposing their voice include networksNational Fishworkers Forum and National Hawker Federation. On the other hand, Walmart India is ensuring the creation of local jobs.
Rajneesh Kumar, Walmart India’s Chief Corporate Affairs Officer said, “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 percent merchandise coming within the country including thousands of small farmers, small suppliers, and women-owned businesses.”
He ensured that the deal would rather create lakhs of new jobs and help thousands of local suppliers. Flipkart’s marketplace model has already benefited suppliers and manufacturers throughout the country. The government of India has allowed 100% FDI in Flipkart’s model. Flipkart has not made any public statement regarding this as of yet.