USNMix Report: Amazon, Walmart, losses of
so many millions of dollars
due to change in e-commerce policy.
due to change in e-commerce policy.
In 2018 Wal-Mart bought a 77
percent stake in Flipkart for $ 16 billion.
Changes to the rules for
e-commerce companies have been made since February. After the new policy came
into effect, Amazon and Walmart have lost about $ 50 billion dollar (3 lakh 50
thousand million rupees). In 2018 both the companies invested in large scale in
India. Amazon invested about $ 5 billion in the Indian market. At the same
time, Walmart bought a 77 percent stake in Flipkart for $ 16 billion.
After the new policy was
introduced in India, the price of shares listed in Nasdaq (American Stock
Market) fell by 5.38 percent. At the same time, Walmart's share price fell
2.06 percent. Amazon's market value reached $ 795.18 billion after the share
price fell on Friday, while Walmart's market value reached $ 272.69 billion.
Speaking on behalf of Flipkart, it was said that it is frustrated with the
change in FDI rules in India. The company says that this decision was taken in
haste.
In December, the government
had issued cleanliness on the rules of foreign investment in e-commerce. In the
cleanliness, it was said that e-commerce companies that take foreign investment
will not be allowed to sell their platforms on the website, or to the companies
or affiliates of their own group.
Even the elegant commerce
companies like Amazon and Flipkart sell products that they sell on their
website in which they are products supplied by their subsidiaries. Many times,
due to the influence of prices, cheap goods are sold.
The e-commerce companies
seeking foreign investment argued that their affiliates have goods worth around
Rs 6,000 crores, which would not be possible to make a sale within a month.
Because of this, they will have to bear huge losses. Therefore, the government
limits the deadline for implementing the rules by 6 months. But the government
rejected this argument.
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