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Walmart hopeful in India despite e-com FDI policy change

NEW DELHI: US retail main Walmart, which invested $16 billion in Flipkart, Wednesday stated it's committed to the Indian marketplace and is positive despite recent changes in the FDI policy for e-commerce firms in the nation.

The Bentonville-based retailing main's observation came after a recent document via global consultancy firm Morgan Stanley, which had hinted that Walmart might give up Flipkart as the new overseas direct investment (FDI) policy came into impact, which would decrease its profitability in the long run.

Morgan Stanley, in a document titled 'Assessing Flipkart Risk to Walmart EPS' dated February 4, claimed that "an exit is likely, not completely out of the question, with the Indian e-commerce market becoming more complicated."

“Walmart's and Flipkart's dedication to India is deep and long term. Despite the hot changes in laws, we stay positive concerning the nation,” stated Dirk Van den Berghe, Executive Vice President and Regional CEO Walmart Asia and Canada.

He further added, "We will continue to focus on serving customers, creating sustained economic growth and bringing sustainable benefits to the country, including employment generation, supporting small businesses and farmers, and growing Indian exports to Walmart's global markets."

Tightening norms for e-commerce firms having overseas investment, the federal government, from February 1, barred on-line marketplaces like Flipkart and Amazon from promoting merchandise of businesses where they dangle stakes and banned unique advertising and marketing preparations that might affect product value.

The revised policy on FDI in on-line retail, issued via the commerce and business ministry, additionally stated that those firms have to offer equivalent services or facilities to all its distributors with out discrimination.

Last year on August 18, Walmart had completed acquisition of 77 per cent stake in Flipkart for roughly $16 billion (Rs 1.05 lakh crore), a deal which gave the USA store get admission to to the Indian e-commerce marketplace.

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