JOIN USAs the talks about the world’s largest retailer Walmart buying Indian ecommerce firm Flipkart move to an advance stage, premier traders’ body CAIT has urged the government not to allow the deal, as it will encourage more loss-funding and predatory pricing on ecommerce, which is already gripped with malpractices.
CAIT also demanded scrutiny of the Flipkart-Walmart deal, as it would lead to massive job losses, it feared.
“It is really unfortunate that in spite of having a clear FDI policy, foreign companies are finding an escape route, whether it is in retail or ecommerce,” CAIT said in a statement.
It asked the government to form a regulatory authority for ecommerce, and till the authority is formed, no such deal should be allowed.
CAIT has reacted at a time when the world’s largest retailer and India’s well-known ecommerce plate form are close to clinching a deal the price of which is not confirmed.
“It’s really unfortunate that even after having a clear FDI policy, multinationals are finding an escape route, whether it is in retail or ecommerce. Walmart, after failing to enter India in the retail sector through FDI, has chosen the ecommerce route, which will be quite harmful for the trading community,’’CAIT Secretary General Praveen Khandelwal said.
He threatened to move court if the government and the Competition Commission of India are unable to help.