If sources are to be believed, Walmart CEO Doug McMillon has written to PM Narendra Modi, seeking certainty and predictability in India’s business environment. Walmart-owned Flipkart and rival Amazon were clearly upset over changes in FDI rules for ecommerce marketplaces late last year, which forced them to overhaul their business models.
Walmart was particularly disappointed because the changes had come just months after it paid $16 billion to acquire Flipkart. The local units of both US companies are now also facing probes over their alleged roles in predatory pricing that small retailers claim was forcing them out of business.
McMillon, who had met Modi in New York on September 25 during the PM’s visit to the US, has in his letter highlighted Walmart’s commitment to India, including investments to empower small and medium enterprises, global sourcing from the country and job creation that it would do here in the future, even as he called for a stable environment. He also lauded the PM for the improvement in India’s ranking on ease of doing business.
The letter comes at a time when a body of small traders, which has been accusing Flipkart and Amazon of “unfair business practices” and violation of FDI rules, has stepped up its opposition against the foreign-owned marketplaces, blaming predatory pricing by the two companies for a slump in the businesses of traditional retail during the ongoing Diwali season.
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