"The $16 billion acquisition by international e-commerce retail giant Walmart of Indian e-retail Flipkart facilitates the backdoor entry of foreign capital to take over India's huge multi-crore retail trade sector," said the CPM Politburo in a statement.
On Wednesday, Walmart Inc announced it was buying 77 per cent equity stake in Flipkart for $16 billion.
Both the Left party and the BJP have always opposed the move to allow foreign direct investment (FDI) in the country's multi-brand retail sector but after coming into power, the BJP is facilitating the entry of foreign capital through the e-commerce route, said the CPI-M.
"This would completely destroy India's retail trade that employs more than four crore people directly. Nearly one-fifth of our population is dependent on their earnings," it said.
The CPI-M said it was common knowledge that Walmart sourced its products from international markets and now these will be sold in India, further destroying the small scale and medium scale sector which is the largest provider of employment after the agricultural sector.
"This takeover once again exposes the naked betrayal of all promises made by the Modi government: Make in India has now become Make for India," it said.
The Politburo of the CPI-M strongly condemned the sanction provided by the Modi government to allow such an acquisition to take place which "is against the interests of our country and its people", it said, demanding that the takeover should not be allowed.
Founded in 2007, Flipkart has led the e-commerce revolution in the sub-continent, growing rapidly and earning customers' trust with digital technology, including artificial intelligence to hard-sell a wide range of goods spanning electronics, appliances, mobile, fashion and apparel.
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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