Sunday, July 25, 2021

Walmart Backed Filpkart Ready To Take On Amazon in Indian E-Commerce Market

US Firm Walmart and India’s Flipkart will continue to make significant investments in India and challenge the dominance of Amazon. Both Walmart and Flipkart are the major player in India’s e-commerce market both of whom have been affected by new norms for FDI introduced by Ministry of Commerce.

India Allows ‘Private Firms’ To Bid For INR 21,000 Defence Contract

The regional Chief Executive Officer of Walmart, Dirk Van den Berghe addressed media saying, “Walmart’s and Flipkart’s commitment to India is deep and long term. Despite the recent changes in regulations, we remain optimistic about the country.”

Both Walmart and Flipkart will focus on retaining the market to ensure growth and stability in India. The two companies are committed to job creation, helping small businesses and growing Indian exports. Walmart declared its commitment towards the Indian market, after the American investment bank, Morgan Stanley predicted Walmart’s exit from the Indian market due to the Indian government’s new FDI  rules and regulations. “An exit is likely, not completely out of the question, with the Indian e-commerce market becoming more complicated,” the financial services firm said in its report.

In 2018, Walmart took 77 per cent equity shares in Flipkart at a huge cost i.e. 16 billion dollars. The FDI new norms in e-commerce have restricted the business of major retailers like Walmart-backed Flipkart and the Indian branch of Amazon.

On December 26, 2018, revised norms were introduced by the Ministry of Commerce and Industry. Since its implementation, the norms have restricted companies to sell its product exclusively on the e-commerce platform. This move has benefited multiple small businesses in India. Now, the companies are working to bring changes in the ownership of inventory owned by them.

More News at EurAsian Times

Featured News