New Delhi: Following the announcement of American retail major Walmart's acquisition of 77 percent stake in Flipkart, the Communist Party of India (Marxist) or CPI (M) opined that the deal would have a detrimental impact on the small and medium enterprise sector (SME) in India.
In a press statement released by the party on Thursday, the Polit Bureau of the CPI (M) demanded that the deal be prohibited.
"It is common knowledge that Walmart sources its products from international markets. These will now be sold in India, further destroying the small and medium scale sector, which is the largest provider of employment, after the agricultural sector," the statement noted.
On Wednesday, Walmart announced that it would acquire 77 percent stake in the Indian e-commerce major.
This, the CPI (M) said, would facilitate the backdoor entry of foreign capital to take over India's multi-crore retail trade sector.
"The proposal to allow FDI in India's multi-brand retail sector was stoutly opposed by the Left parties. When in opposition, the BJP also opposed this move. Now in government, the BJP is facilitating the entry of foreign capital through the e-commerce route. 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 Polit Bureau of the CPI (M) strongly condemns 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. The PB demands that this should not be allowed," the party statement read.
Earlier in the day, a protest was staged by the Swadeshi Jagaran Manch, the economic wing of the Rashtriya Swayamsevak Sangh (RSS) against Walmart's acquisition of majority stake in Flipkart.
The American retail major will be acquiring 77 percent stake in Flipkart against an initial payment of USD 16 billion (over 1 lakh crore).