Tightened E-Commerce Laws ; unable to shake the confidence of WALMART In India

By SK Kapoor.

The government of India has made stringent rules for E-Commerce Industry like ,

from February 1, barred online market places like Amazon & Flipkart are barred from selling product of companies where they hold stakes and exclusive marketing arrangements that could influence product price is also banned .


These tightened norms had somewhat shaken the FLIPKART owned WALMART’s confidence at first , as rumoured.


But this Bentonville- based retailing major , Walmart , said,” it is ‘disappointed‘ with recent changes in FDI policy for e-commerce firms in India, and hopes for a collaborative regulatory process going forward which results in a level-playing field.”


Walmart , Inc. President , CEO , and Director C Douglas McMillon told analysts in an earnings call ,

In India , we remain optimistic about the e-commerce opportunity , given the size of the market , the low penetration of e-commerce in the retail channel and the pace at which it’s growing.”

McMillon talks about the regulatory changes ,” the things that have happened have been disappointing in some ways, but they haven’t shaken our confidence and excitement about what this is going to mean to the company long term.”


“And this isn’t a story about one quarter or even one year. We hope to have an effective , productive dialogue as it relates to the future changes that happen. But in terms of how the business has behaved , it’s in line with what we thought it would be,” he added.

In the future, we hope to work with the government for pro-growth policies that can allow this nascent industry and the domestic manufacturers, farmers and suppliers that benefit from it to develop and prosper .”


Why Walmart still have an optimistic approach to Indian market ??

Walmart brings itself in the Indian market due to the progressive growth of e-commerce in India, market size and growth of middle class.

And according to McMillon all that reasons are still as true today as they were six months ago. So that’s why Walmart is still excited about the Indian e-commerce market.

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