The Confederation of All India Traders (CAIT), the leading advocate for small traders and retail businesses in India with around six crore merchants across 40,000 affiliates, has approached Competition Commission of India (CCI), a statutory body of the Government of India, against Walmart-Flipkart deal.
The association has alleged that the deal would take a toll on jobs, lead to uneven playing field and turn out to be a nightmare for the retail businesses in India. It reportedly claims that traders were not consulted by the Government despite raising concerns with the Commerce Ministry on the deal.
CAIT has even asked Commerce Minister Suresh Prabhu about the steps taken by the Government to scrutinise the deal.
It is pertinent to mention here that the US-based retail giant Walmart has inked a deal worth around US $ 16 billion to buy 77 per cent stake in Indian e-retailer Flipkart. Interestingly, Walmart has also approached CCI for the final approval over acquisition.
According to CAIT, the Walmart-Flipkart deal is related to FDI policy, cyber security and apprehension of using e-commerce for entering retail trade by circumventing the law, etc.
However, Walmart CEO Doug McMillon has claimed that their investment 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. The CEO has already asserted that the deal will create 10 million jobs in India.
