Retail trader body Confederation of All India Traders (CAIT) has threatened nationwide agitation if the government clears USD 16 billion Walmart-Flipkart deal.
"Since last five years we are knocking the doors of the government for bringing reforms in e-commerce but all has gone to deaf ears which encouraged Walmart to buy Flipkart and enter into retail trade indirectly," CAIT said in a statement.
The deal will increase malpractices manifold in e-commerce spectrum, it said.
The basic fundamentals of the deal are based on circumvention of the law with an underlying object to exploit, manipulate and control the retail sector including e-commerce, it added.
Last month, the US retailer Walmart Inc announced acquisition of 77 per cent stake in Flipkart in its biggest takeover till date. The deal values the 11-year old Indian e-commerce firm at USD 20.8 billion.
Meanwhile, Walmart believes Flipkart's "ecosystem" of businesses, including Myntra-Jabong and PhonePe which are part of its mega USD 16 billion deal with the Indian company, could be a "true advantage" for the US-based retail giant.
Judith McKenna, Executive VP, President and CEO of Walmart International, on a recent investor call has said the e-commerce market in India, while it is still nascent at 2 per cent penetration, is forecast to grow rapidly.
"... what's really unusual about Flipkart is that it's not just an e-commerce retailer. What we're really interested in as we've got to understand this business better is it's actually creating a platform, an ecosystem, if you like, of operating within that market. And we think that's one of the areas that gives it a true advantage," she said.
