SJM writes to PM, seeks intervention in reining in Walmart

SJM writes to PM, seeks intervention in reining in Walmart

- in economy, Industry
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New Delhi, May 12, 2018 : Swadeshi Jagran Manch (SJM), the economic wing of the RSS, has written to Prime Minister Narendra Modi, seeking his intervention in the interests of Indian retailers. SJM has accused Walmart of using e-commerce route to circumvent the rules to enter Indian market, which bars foreign companies in multi-brand retail. SJM has alleged that Walmart is ‘circumventing’ rules for a backdoor entry into multi-brand retails with the acquisition of 77 per cent stake in Flipkart and has sought Prime Minister Modi’s intervention to safeguard the interests of those at the bottom of pyramid.

“This will further eliminate small and medium businesses, small shops, and opportunity to create more jobs. Most of these small entrepreneurs are already battling for their existence; entry of Walmart will further create problems for them,” Ashwani Mahajan, SJM’s co-covenor, stated in his letter to the Prime Minister. “The experience of other countries is that their domestic companies sold out to bigger MNCs. All over the world, giants like Walmart and Cosco have taken over them,” he said.

“This deal is unfortunate, but not surprising. Now the danger is knocking at our doors. These developments force us to raise our voice and appraise people of various disruptions it will do to the market and violations of the law of the land, along with being unethical and against the national interests,” Mahajan emphasised in his letter to the Prime Minister. “The general consensus in the country is that FDI in multi-brand retail will not only kill entrepreneurship, and is anti-farmers and will kill job creation opportunities in the country. Walmart is using the e-commerce route to circumvent the rules to attack Indian market. It is to be noted that nowhere in the world, Walmart has a market place model,” Mahajan further wrote in the letter.

Requesting the Prime Minister’s intervention, he said: “Walmart is the world’s largest importer of Chinese goods –after top six countries, they are seventh. It is against the interest of small traders and further kills our ‘Make in India’ mission too.” “We all know that they have interests in the multi-brand retail of food and combination of both will kill the interests of farmers,” he added. “Flipkart’s operations are ‘not beyond suspicion’ and their group companies have not filed their statement of accounts for the year 2016-2017, 2015-2016 and have only made partial disclosures,” he alleged.

“It will be very dangerous, if we allow them to raise funds, transfer assets, that too to company like Walmart,” Mahajan added. Criticizing the lack of rules, he said: “There are no rules set for the B2B trade via e-commerce. So there is no check and balance.” He stressed for strict rules and regulations and the presence of a watchdog so that Indian interest could be best protected.

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