Walmart's 'Backdoor Entry' Via Flipkart Deal Will Crush Domestic Retailers: RSS' Wing Writes to PM Narendra Modi
The acquisition, as mentioned, hasn’t bemused many. It will be interesting to see how one-time serious opposers of FDI in Retail, will respond to the current situation, if at all they do.
Mumbai, May 09: As Walmart bought a hefty 77 percent majority stake in Flipkart on Wednesday, the acquisition move wasn’t welcomed in many quarters. The discontent was so much so that a Rashtriya Swayamsevak Sangh (RSS) affiliate – Swadeshi Jagran Manch (SJM) – has sought Prime Minister Narendra Modi’s intervention into the matter.
‘Walmart is circumventing rules for a back-door entry into the Indian market,’ alleged the Swadeshi Jagran Manch, who is also the economic wing of RSS. The organisation has requested PM Narendra Modi to intervene in this to safeguard national interest.
In their letter to the Prime Minister, the SJM has pleaded him to ensure that the ones who are at the bottom of the pyramid in retail and agricultural space, their interests are safeguarded.
"This will further eliminate the small and medium businesses, small shops, and opportunity to create more jobs. Most of these small entrepreneurs are already battling for their existence; entry of Walmart will further create problems for them," the SJM's co-convenor said in his letter. He also alleged that there was a series of violations of law in allowing the deal to happen.
"It will be very dangerous if we allow them to raise funds, transfer assets, that too to a company like Walmart," Mahajan wrote to Modi. He also dispatched a copy of the letter to Commerce Minister Suresh Prabhu.
Mahajan said, "This deal is unfortunate, but not surprising. Now the danger is knocking at our doors. These developments forced us to write this letter and appraise you about various disruptions it will do to the market and violations of the law of the land, along with being unethical and against the national interests."
‘Walmart buys 77 percent stake in Flipkart’, will be one of the major highlights in the majority of the news publications on Thursday morning. However, the news, as mentioned, hasn’t bemused many. It will be interesting to see how one-time serious opposers of Walmart (read: FDI in Retail), will respond to the current situation, if at all they do.
(The above story first appeared on LatestLY on May 09, 2018 11:29 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).