Although the details and metrics of the Walmart-Flipkart deal is yet to be made public but as a first reaction, the Confederation of All India Traders (CAIT) said that it is certain that the Walmart-Flipkart deal is nothing but in long run a clear attempt to control and dominate the much potential retail trade of India by Walmart through e-commerce which is only a bridge to reach out to offline retail market of India.
CAIT Secretary General Praveen Khandelwal said that key issues of the matter is whoever controls the platform control data and digital intelligence. Owner can squeeze and dictate anything. It is much more difficult for the Govt to control and regulate foreign owned platforms and all indigenous players will have no value if a foreign company runs the platform.
He further said that in absence of any e-commerce policy and any regulatory mechanism, the continuing predatory pricing and deep discounts practices in e commerce will be encouraged more. Digitally powered e-Walmart will certainly vitiate the e-commerce and retail market. There will be an uneven level playing field to the disadvantage of retail traders. Only the venture capitalist, investors and promotors will be benefitted and not the country.
The Government should immediately frame a national policy for e-commerce and constitute a regulatory authority to regulate and e-commerce business in India and till such time, the deal should be put in abeyance by the Government and a close scrutiny should be held in the entire deal.
Khandelwal said that once the metrics of the deal are made public, the CAIT will conduct a deep study and then will finalise its future course of action in this matter.