Flipkart deal is positive: Niti VC
He also said that the deal is as per India's foreign direct investment (FDI) norms.
New Delhi: The $16 billion deal will have a positive impact on India’s foreign investment inflows, Niti Aayog vice-chairman Rajiv Kumar said on Thursday.
He also said that the deal is as per India’s foreign direct investment (FDI) norms.
Walmart on Wednesday had announced the acquisition of 77 per cent stake in Flipkart in the largest e-commerce deal which will give the US retailer access to the Indian online market that is estimated to grow to $200 billion within a decade.
“It will have a very positive impact. The deal is as per the countrys FDI norm,” Kumar said, adding that Walmart is global leader and will help small businesses in India to procure goods at cheaper rate.
The deal, he said, will also have positive impact on FDI investments into the country. These comments assume significance as soon after the deal was announced, RSS-affiliate Swadeshi Jagran Manch alleged that Walmart was “circumventing” rules for a “back-door entry” into India and sought Prime Minister’s intervention to
safeguard “national interest”.