India Faces Massive Protests amid Walmart-Flipkart Deal

by | Jun 29, 2018 | NEWS

Walmart recently acquired a 77 percent stake in India’s largest online retailer, Flipkart. The U.S.-based company spent $16 billion on the deal, but locals aren’t happy, and massive nation-wide protests are planned for July 2.

The deal has been challenged since its proposal. Trade organizations have filed numerous disputes, hoping the government would block the deal. Since the government has yet to step in, trade groups are taking action themselves.

The protest is being organized by the Confederation of All India Traders (CAIT) and will be attended by members of other groups, such as the Swadeshi Jagran Manch (SJM) – a political organization promoting self-reliance – farmers’ rights groups, and other smaller trade groups, as well.

CAIT expects over 1,000 separate protests including over 700,000 people across India.

The problem, according to CAIT, is that the deal will create unfair market conditions in India. Inc.42 – an Indian media group – has reported CAIT stating in a letter to Indian finance minister Piyush Goyal that the deal would be “cancerous.”

Walmart has been trying to enter the lucrative Indian market for over a decade, but so far, has not been allowed.

The company needs the growing Indian market to compete with online retail giant, Amazon.
The Flipkart deal is a major boon for Walmart’s future – but with so many groups against them, it will be an up-hill battle.