Get All Access for $5/mo

2 Reasons Why Walmart CEO Pled PM Modi for Stable Business Environment Changes in foreign direct investment norms for web based market places toward the end of last year had disturbed Walmart-owned Flipkart and Amazon, and constrained them to update their plans of action.

By Vinayak Sharma

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

GettyImages

According to ET, Walmart CEO Doug Mcmillon has urged PM Modi through a letter to make reforms in the Indian FDI structure by infusing certainty and stability in it. After India introduced its new FDI norms targeting $5 trillion economy, Walmart got disappointed just after the FDI introduction as Walmart paid 16 million dollars to acquire Flipkart.

McMillon, who had met Modi in New York on September 25 during the PM's visit to the US, has in his letter featured Walmart's role in India, including investments to enable small and medium enterprises, worldwide sourcing from the nation and employment creation that it would do here later on, even as he required a steady situation. He likewise commended the PM for the improvement in India's ranking at ease of doing business.

Also Read: 3 Reasons How Newly Launched Govt. Portal Will Help Coal Business in India

2 Reasons that made Walmart CEO to urge PM Modi in reforming Indian business norms

Revised FDI Norms-Business loss

Walmart CEO suffered financial loss just after the Indian government worked on FDI reforms in order to bring stable economy and GDP growth. In India, Foreign Direct Investment rose to 28 per cent in the first quarter FY 2019-10 to $16.3 Billion. Last year, percentage count was $12.7 Billion. Just before the FDI announcement, Walmart invested $16 Billion to bought Flipkart. Post Walmart's investment, Indian government reformed FDI policy. This made competing businesses like Amazon to overhaul their business models.

Also Read: How Saudi Arabia's $100 billion Investment in India Will Go a Long Way In Meeting Infrastructure Goals

Traders' Protest

On Monday, the Confederation of All India Traders (CAIT) stated that Amazon and Flipkart together created complete business worth Rs 19,000 crore in their four-day mega sales events prior this month. Last week, commerce minister mentioned that the administration was examining Flipkart and Amazon for any savage pricing. This resulted in the form of a setback for the companies that were already stressed about the transformations in the norms.

According to ET, Reuters reported that Walmart mentioned to the US government in January that India's reformed investment norms for e commerce business is regressive in India and it can result in detrimental business bonds between the two traders.

Stating to increase employment in India, Walmart CEO mentioned that the organization will source over 25% of products of the fruits and vegetables directly from Indian crofters, particularly from the individuals who are in Uttar Pradesh, Andhra Pradesh and Telangana. He likewise included that a steady and open administrative environment in the nation will back Walmart's drive and helps make more than one lakh direct employments.

Vinayak Sharma

Entrepreneur Staff

Correspondent, Entrepreneur India

Entrepreneurs

Academic Excellence Is Not Necessary for Success in Life: Hear from the Founder of this Exciting New Digital Education Platform.

Many educational platforms are emerging these days to help people qualify for various types of entrance examinations. But what about the students who don't want to take the traditional path, the ones who don't rank among the top 10 in the classroom yet still aim high in life?

Growing a Business

We're Great at Wishing and Bad at Making Choices — How Obscure Goals and Narrow Targets Derail Our Success

When we're trying to reach a goal, we lose sight of the fact that we need to make tradeoffs. Goals aren't as simple as a proclamation — they are part of a bigger strategy.

Science & Technology

No More ChatGPT? Here's Why Small Language Models Are Stealing the AI Spotlight

Entrepreneurs can leverage this growing tech to create innovative, efficient and targeted AI solutions.

Growing a Business

3 Branding Strategies That Will Make Any Brand Stand Out

Here's how to differentiate your brand in three essential steps — understanding your unique selling proposition, leveraging storytelling, and valuing feedback.

Growing a Business

The Top 5 AI Tools That Can Revolutionize Your Workflow and Boost Productivity

Discover the top 5 AI tools for marketing and content creation that every marketer needs to know.