CPI(M) opposes Walmart acquisition of 77 percent stake in Flipkart

CPI(M) opposes Walmart acquisition of 77 percent stake in Flipkart

Members of Swadeshi Jagran Manch protest agaimnst Walmart in New Delhi on Thursday. The U.S. retailer on Wednesday acquired 77 percent of stake in Flipkart. PTI Photo

Accusing the Narendra Modi government of "naked betrayal" of all promises made by it on the issue of FDI in the multi-brand retail sector over the proposed takeover of Flipkart by US retail giant Walmart, CPI(M) on Thursday said that "Make in India has now become Make for India".

In a statement, the Left party said that the USD 16-billion acquisition of e-retailer Flipkart by retail giant Walmart facilitates the "backdoor entry" of foreign capital to take over India’s huge multi-crore retail trade sector.

"When in opposition, the BJP also opposed this move. Now in government, the BJP is facilitating the entry of foreign capital through the e-commerce route. This takeover once again exposes the naked betrayal of all promises made by the Modi government: Make in India has now become Make for India," the statement says.

The party condemned the move, by stating that the move would completely destroy India’s retail trade that employs more than four crore people directly and nearly one-fifth of the population is dependent on their earnings.

It is common knowledge that Walmart sources its products from international markets and now these will be sold in India which would further destroy the small scale and medium scale sector which is the largest provider of employment after the agricultural sector, the party said.

The CPI(M) has demanded that such move should not be allowed.

Walmart Inc yesterday announced the acquisition of 77 percent stake in Flipkart for about USD 16 billion (Rs 1.05 lakh crore) in the largest e-commerce deal which will give the US retailer access to the Indian online market that is estimated to grow to USD 200 billion within a decade.