E-commerce sector giants Amazon and Walmart had planned a kingdom in the Indian online retail sector, but their ambitions have caught Prime Minister Narendra Modi’s political preferences in view of the forthcoming Lok Sabha elections. In view of the Lok Sabha elections in May, local retailers have put pressure on the government to create trouble for American online veterans.
The new FDI rule of e-commerce, which came into effect from February, became a big problem for Flipkart owned by Amjon and Walmart. The aim of the government to stricten the rules is to protect the interests of small businessmen, but its biggest advantage is going to be Mukesh Ambani, the richest person in the country, who is heading towards becoming a strong opponent for the global companies of this region. . After the defeat in the recent assembly elections, the government is doing every possible help to increase its influence on the voters. Also, he is trying to persuade people angry with the ban on bondage and GST.
Big trouble is new rule
E-commerce platforms will not be able to keep their own inventory from new rules of FDI and they have to deal equally with all sellers. At the same time, they will not be able to deal with the sale of any company’s exclusive exclusively, which means that the restriction on heavy discounts. According to a Bloomberg report, the advantage will be to the domestic companies along with Ambani’s new venture. UBS AG had said last month that Ambani’s Reliance Industries Limited has India’s largest retail chain and the third largest telecommunication network and has immense potential to become a local version of Amazon and Alibaba Group Holdings Limited.
Big win for Mukesh Ambani
Sanchit Vir Gogia, CEO of Greyhound Research, said, “Believe it or not, the strict rules of FDI for e-retailers in India are a big victory for their ambition in the Reliance and retail sector.” Mukesh Ambani had proposed a model for the construction of a model last year after making him king of iron ore in other areas including telecommunications, which provides a hybrid new commerce platform for Reliance’s Consumer Offerings.