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Walmart bets on India despite change in FDI norms

IANS  |  Bengaluru/New Delhi 

American and its Indian are betting big on despite the revised norms for (FDI) in e-commerce, the said.

"Walmart's and Flipkart's commitment to is deep and long term. Despite the recent changes in regulations, we remain optimistic about the country," the of Asia and Canada told IANS in a statement in

The will continue to focus on creating "sustained economic growth and bringing sustainable benefits to India, including employment generation, supporting small businesses and farmers, and growing Indian exports to Walmart's global markets", added Berghe, who is also the retail giant's

Walmart's assertion on the company's commitment to came after American in a report on Monday said the former might exit the country after the new norms in came into force on February 1.

"An exit is likely, not completely out of the question, with the Indian market becoming more complicated," the New York-based financial services firm said in its report titled "Assessing Risk to EPS (earnings per share)".

In May last year, Walmart bought 77 per cent equity stake in for a whopping $16 billion (Rs 1,16,256 crore).

The revised norms in e-commerce, however, have tightened the noose around the businesses of the country's leading - Walmart-owned Flipkart and Indian arm of American giant

The policy revisions, issued by the on December 26, 2018, barred providing a marketplace from exercising control or ownership over the inventory and forbids any company to sell its products exclusively on an alone.

The are now working towards changing the ownership of their inventory, so as to comply with the norms.

--IANS

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, February 07 2019. 16:42 IST
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