Walmart and Flipkart Deal: Impact on Indian Economy


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Sireesha said: (Sep 3, 2018)  
Good evening to everyone.

In my point of view, Walmart and Flipkart deal is a positive impact on Indian economy. Flipkart is an online retail store started as small book selling startup and it became india's biggest online retail store and attracted forign investment as equity shares softbank is main investor in flipkart. Walmart having major compitation from amazon. Walmart to compete with amazon choose flipkart is bestway so it aquired flipkart for ever bigdeal of 16billion dollors.

By this deal all over the world it was a big deal never happen in the e-commerce industry and its good step know the worth of Indian companies and foreigners are give preference to invest in India in equity shares.

Recently Berkshire Hathaway comes to invest in India in Paytm.

Rate this: +24 -9


Payal said: (Aug 19, 2018)  
Acquisition of Flipkart by Walmart is beneficial for Indian consumers as Walmart is well known for low pricing of its products. It provides quality goods at low prices. Thus, Indian consumers will have more variety of products available to them. It will help in raising the living standard of people. But it will not create any additional employment until and unless Walmart infuses additional capital. Because of the entry of Walmart into the Indian market, many other foreign companies are ready and in talks with Indian companies to enter Indian market so that they can increase their market share. With the entry of Walmart, India can also understand and make use of the latest technology as used by them and can offer better products. Also, Indian companies can understand supply chain management of Walmart which, if applied by Indian companies, can help them in providing their products at reasonable prices.

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Kriti said: (Aug 15, 2018)  
Yeah, in my opinion, this deal is not at all beneficiary for our nation. Here talking about Flipkart Walmart deal we need faceoff some factual points like about 1. Job creation.

Will anyone answer me that is Walmart going to hire the illiterate salesman whose working in a shop next by to my door. (after vanishing their business because of heavy discounts).

2. Benefits to the farmer. These MNCs will initially give a lucrative price to farmers later the farmers will be held at their mercy.

3. We are just focusing on a point that they are pouring 16billion$ into e-commerce market but why don't you think that it is one-time investment later profit will be drained every time to their country.

Further, I have more frustration regarding this deal but need to control myself.

Rate this: +18 -16


Shreya said: (Aug 11, 2018)  
It impacts in a positive way. It creat job opportunities. With more investment flowing in Indian economy especially in retail space and production capacity utilization shall improve output and production. Which can create job opportunity?

And growth in Indian economy.

With top economic giants competing for the top spot, product differentiation and localization will bring more variety and we can get the product at low price.

Rate this: +13 -3


Abhijit said: (Aug 11, 2018)  
Hello everyone,

Walmart an international e-commerce giant has struck a deal to acquire Flipkart Pvt Ltd, an Indian e-commerce company based in Bengaluru. Walmart, the largest e-commerce giant acquired a controlling stake of 77% in Flipkart (India's largest e-commerce company by market share) by investing $16 Billion. Some experts say that the Walmart-Flipkart deal will mark a tipping point for the industry.

The Walmart deal may also have a cascading effect on other industries, catalysing investments by US companies seeking inroads into India's rapidly growing markets and increasing the flow of FDI. The investment made by Walmart would support the "Make in India" campaign by adding billions in revenue for Indian manufacturers, supporting an increase in incomes for farmers and reducing food waste by $1.2 billion annually within the next decade. Organized retail is seen as an ecosystem to support growth in domestic manufacturing, consumption and as a job multiplier.

India will now have Walmart, Amazon and Paytm Mall as the key players to compete in the Indian e-commerce market.

Positive impact on Indian economy:

Economic Growth: Walmart will expand across their vertical market which will boost output growth and increase employment opportunities. With positive business sentiments, it will be an impetus to economic growth and capitalism. The deal will be subject to tax in India so revenue gains shall add to domestic revenue receipts.

Efficient Supply Chain: Expansion of e-commerce requires an efficient supply chain and logistics which require infrastructural development. This will give a fillip to Indian agriculture and infrastructure and benefit farmers as they would be able to cater to more demand as Walmart shares its extensive experience in retailing, logistics and inventory and supply chain management. This can especially help the perishable goods industry which is Walmart's forte.

Job creation: With more investment flowing in Indian economy especially in retail space, capacity utilization shall improve. Output and productivity growth can create new employment opportunities for both skilled and unskilled labour.

Negative impact on Indian Economy:

Brick and Mortar Stores may shut down: Walmart is known for scrapping small businesses which are selling at ultra-low prices through Flipkart. Walmart may bring in its own labels with hyper-competitive prices and replace the domestic MSMEs (Medium, small and micro enterprises) which can be a threat to brick and mortar stores as they fear shut down due to competitive pressures.

The threat of Pan India Protests: Tamil Nadu Vanigar Sangankalin Peramaippu federation of traders has already warned the government of pan India protests. Many more trade unions may call for such protests which can hurt our economy, create social chaos and cause infrastructural damages.

Backdoor entry for Walmart: FDI in India allows 100% FDI in single-brand retail. Walmart is a multi-brand retail chain where 100% FDI is not allowed, so it focused only on cash and carry business. Flipkart has already circumvented such restrictions in direct selling which will be used by Walmart.

Big Data Mining: Large data of Indian shoppers will be shared with the US retail giant which may give large controls to a foreign firm can use it to control our domestic value chain in consumer goods space and buying patterns. Real-time data analysis can help in identifying the consumers & their needs better than domestic players. Therefore, there is a need to keep a system of checks and balances to avoid any instance of a data breach of Indian customers.

Rate this: +51 -3


Walmart and Flipkart Deal: Impact on Indian Economy

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