Govt has not made any assessment of direct impact of Walmart-Flipkart deal on small traders: MoS Commerce & Industry

New Delhi, July 30 (KNN) The Government has not made any assessment of the direct impact of Walmart and Flipkart deal on small traders, Minister of State of Commerce and Industry, C. R. Chaudhary, informed Parliament.

 In a written reply in the Lok Sabha today, the Minister said Foreign Direct Investment (FDI) in retail has been allowed in a calibrated manner after intensive consultations with stakeholders including concerned Ministries and departments, State Governments, apex industry chambers, associations and other organizations.

Suggestions and views received from various stakeholders and public on various aspects of FDI regime are examined before taking appropriate action, he said.

Chaudhary said that there is no proposal to set up a special group to keep tabs on any violation of its foreign investment policy by online retail platforms such as Amazon, Flipkart and Myntra.

However, any violation of FDI policy regulations is covered by the penal provision of the FEMA, 1999.

Reserve bank of India administers the FEMA and Enforcement Directorate under the Ministry of Finance is the authority for the enforcement of FEMA.

US-based retail major Walmart Inc announced acquisition of 77 per cent stake in Flipkart in its biggest takeover till date. The deal values the 11-year old Indian e-commerce firm at USD 20.8 billion.

The small traders under the umbrella of Confederation of All India Traders (CAIT) have been opposing the Walmart-Flipkart deal stating that the 'deal is nothing but a clear attempt to control and dominate the retail trade' in India by Walmart through e-commerce in the long run.

Last week, addressing members of CAIT, Commerce Minister Suresh Prabhu said the ministry has asked the Enforcement Directorate (ED) to look into the complaints related to alleged violation of foreign direct investment norms by some e-commerce players. (KNN Bureau)