Sandhya Ramachandran

Walmart acquires Flipkart in a landmark deal – a first of its kind! Walmart, the American retail supergiant recently acquired Flipkart – an ecommerce and shopping website based in India. This will pave the way for the American retailer’s entry to the Indian market. Foreign direct investment in retail will allow big players from various countries to capture a sizeable chunk of the Indian market. Many Indian youth nowadays prefer to shop online. Flipkart – a growing Indian retail business will now be run by Walmart – a highly successful American company. The $16 billion deal makes it the world’s largest ever ecommerce deal. Many Indians are of the opinion that allowing an American retailer on Indian soil could dilute the government’s highly ambitious ‘Make in India’ projects. People feel that Indian entrepreneurs should be encouraged and empowered rather than allowing foreign companies to take ownership and gain profits. However one cannot deny that a deal of this magnitude is likely to make India a point of discussion in the international markets as well. The Indian economy is only growing. Kishore Biyani – CEO of the erstwhile Future Group feels that the deal ushers in the dawn of a new era in ecommerce. While new CEO’s from Walmart will bring in fresh expertise and experience, majority of Flipkart’s management is expected to remain the same. The growth and profits of Flipkart is expected to increase multifold as the Indian market gears up to witness competition, excitement and more on the business front.