Flipkart deal will kill retail: CPI(M)

‘Over 4 crore people will be affected’

This photo taken on May 9, 2018 shows Walmart CEO Doug McMillon (R) speaking next to Flipkart co-founder and CEO Binny Bansal at an event in Bangalore, as a deal was announced for Walmart to buy a stake in Flipkart.

The CPI(M) on Thursday condemned the Walmart-Flipkart deal saying the Narendra Modi government was facilitating backdoor entry of foreign capital, which will destroy India’s retail sector.

In a deal worth $16 billion, Walmart purchased 77% stake in Indian e-retail firm Flipkart.

The proposal to allow FDI in multi-brand retail was opposed by the Left parties. “When in Opposition, the BJP was against this move. Now in government, the BJP is facilitating the entry of foreign capital through the e-commerce route. This will completely destroy India’s retail trade that employs over four crore people directly. Nearly one-fifth of our population is dependent on their earnings,” the Politburo said in a statement.

The deal will have a trickle down effect on the small-scale and medium-scale sectors. “It is common knowledge that Walmart sources its products from international markets. These will now be sold in India, further destroying the small-scale and medium-scale sectors, which is the largest provider of employment after the agricultural sector,” the statement said.