The US based Multinational Corporation (MNC) Walmart’s acquisition of Flipkart undermines India’s economic and digital sovereignty and the livelihood of millions in India. If the $ 16 billion deal goes through, two US companies (the other being Amazon) will dominate India’s e-retail sector. They will also own India’s key consumer and other economic data, making them our digital overlords, joining the ranks of Google and Facebook.
The acquisition of the largest e-commerce firm promoted by Indian entrepreneurs is the latest step in a series of developments aimed at circumventing the existing cap on FDI in multi-brand retail by permitting foreign-owned online retail in India, and developing a digital stranglehold by foreign companies over India’s consumer goods value chains.
This process saw the gradual take-over of majority stake in the formerly Indian-owned Flipkart, the entry of the world’s largest e-retailer Amazon, and now the take-over of Flipkart by Walmart. Jack Ma, head of China’s Alibaba, says all e-commerce companies now have integrated online and offline strategies, consolidating operations towards one ‘new retail’. This is also evidenced by recent moves in the US by Walmart to enter e-retail and by Amazon to move into brick-and-mortar retail. It should therefore be clear to everyone that allowing FDI in e-retail in India is but a back-door entry of foreign players into multi-brand retail. Ironically, the same political party, which a decade ago strongly opposed the entry of Walmart into India, is now happy to welcome its far more powerful, digitally-enabled avatar.
India’s domestic digital retail industry will of course suffer by the domination of these two US MNCs. But worst affected will be small brick-and-mortar retail stores accounting for over 90% of the Indian retail sector, SME manufacturers, small delivery companies and suppliers of goods including farmers whose margins will be ruthlessly squeezed, with their behaviour digitally-controlled. Walmart is well-known for its global supply chain, especially of cheap goods from China, which means local manufacturers and suppliers will suffer deep hits.
This is similar to what would happen with FDI in brick-and-mortar multi-brand retail. It will, in fact, be worse, as digitally-enabled ‘new retail’ becomes omnipresent and omnipotent. The concentration of economic power with the two US MNCs, now constituting a potential duopoly in India, will render them too powerful to be meaningfully regulated. In the US, the trail of destruction of small stores, local businesses, small manufacturers and countless workers left behind by Walmart and other giant retailers is well documented, and the EU has also witnessed the same. ‘New retail’ seeks to own and control key data of all trading activity across sectors resulting in unassailable power. National policy or regulatory remits over them would then be as ineffective as they currently are over Google or Facebook. Manufacturers, suppliers and traders, producers and service providers, all become enslaved to digitally controlled platforms, working as per their parameters, but denied any rights or benefits. In this context, it is critical that the Competition Commission of India (CCI) examine the issue of monopolistic trade practices vis-a-vis this deal.
It is argued that Walmart and other retail giants will generate employment, but of what kind? Walmart has a long history of busting trade unions, violating the right to collective bargaining, paying poverty wages and disregarding social security laws. In e-commerce, work will also be outsourced to couriers and other service providers, making it a long stretch to prove that they are workers. Further, even if Walmart and Amazon employ a few thousand more, they are unlikely to neutralise the massive employment loss associated with the collapse of both the formal and informal retail sector. In this business model, whether in retail or in so-called ‘aggregators’ such as Uber, the giant corporations provide temporary benefits to consumers, and hence appearing to be on their side, by squeezing everybody in between including small producers and the vast majority of workers in the supply chain.
Digitalisation will soon be central to a wide range of economic activities, many of these being controlled by MNCs. A sovereign nation must be able to regulate e-commerce companies, making them comply with policies that uphold public interest, and ensuring that all economic actors get their fair share. This will be next to impossible with giant corporations operating from abroad and storing all their data overseas. There is an urgent need to reverse the entry of foreign e-commerce companies and their take-over of Indian entities, and to evolve effective regulations to govern the operations of domestic entities and protect the interests of the different players involved.
Digital companies such as Google and Facebook frequently refuse government or court orders for content take-down asserting that their data, algorithms and platforms operate from the US, and are subject to the latter’s laws. It will not be very different for data and Artificial Intelligence powering e-commerce platforms. This is what makes it extremely difficult to nationally regulate global digital companies, including e-commerce ones, and the reason that digital platforms in key sectors, including on-line retail, should be domestically owned.
After trailing behind India in software technologies till a decade back, China is now a global leader in digital technologies. China has been able to leverage its growing software capability because it has incubated domestically-owned digital e-commerce systems such as Baidu, Alibaba and Tencent, which also store their data locally.
The Government is seemingly blind to, or does not care about, the extra-ordinary dangers that the country would face if India’s e-commerce ecosystems are foreign-owned and controlled. Not just China, but the US and EU have also begun to disallow foreign takeovers of digital companies considered of strategic or economic importance. If the growing tendency of foreign control of digital platforms in key sectors is not resisted and reversed, India runs the danger of what has been called digital colonization.
Citizens of India should be deeply concerned about the ongoing developments in the e-commerce and especially the online retail space, the latest of which is the Walmart-Flipkart deal. We the undersigned, call for an urgent national debate on this important issue of economic independence and digital sovereignty, affecting the interests of many millions of Indians in different walks of life from workers to farmers, small shopkeepers and suppliers, manufacturers and traders, and a host of service providers, apart from potentially compromising consumption data of hundreds of millions of Indians.
Pending a national debate involving all the affected constituencies, and an informed collective decision based on it, we further demand that the Government of India halts Walmart’s takeover of Flipkart, upholds the policy of restricting FDI in multi-brand retail, and draws up a policy in consonance with this for online retail. We also seek a comprehensive policy on leveraging the strategic value of India’s data for the interest of India and her people, and on domestic ownership and regulation of digital platforms in key sectors.
Endorsed by:
Organisations/ Networks
Andhra Pradesh Vyavasaya Vruthidarula Union ( APVVU)
Adivasi Navjeewan Gathan Nayoti Aagua (ANGNA)
Ahilya Chamber Commerce & Industry, Indore, Madhya Pradesh
All Goa FMCG & Telecom Distributors Association (AGFTDA)
All India Bank Officers Confederation (AIBOC)
All India Central Council Of Trade Unions (AICCTU)
All India Consumer Products Distributors Federation (AICPDF)
All India Kisan Sabha (AIKS)
All India Online Vendors Association
All India People’s Forum (AIPF)
All India People’s Science Network (AIPSN)
All India Public Sector and Central Government Officers Confederation
All India Retailers Federation, Jammu & Kashmir
All India Women Hawkers Federation
All Tripura Merchants Association
Alliance for Sustainable & Holistic Agriculture (ASHA)
Alternative Law Forum (ALF), Karnataka
Anti Free Trade Agreement Committee
Badayl India
Banabasi Vikash Parishad, Odisha
Bengaluru Jilla Beedhi Vyapari Sanghatanegala Okkuta, Bengaluru
Bhai Sudam Deshmukh Shikshan Santha, Nagpur
Bhartiya Udyog Vyapar Mandal
Bihar Rajya Khadyann Vyasai Sangh, Patna, Bihar
Campaign Against Fabricated Cases (CAFC), Odisha
Centre for Financial Accountability (CFA)
Centre for Workers Education, New Delhi
Centre of Indian Trade Unions (CITU)
Chamber of Associations of Maharashtra Industry and Trade (CAMIT)
Chandigarh Beopar Mandal, Chandigarh
Chemical Merchants Association, Delhi
Chhattisgarh Chamber of Commerce & Industries
Civil Society Forum On Human Rights, Bhubaneswar
Communist Party of India (Marxist – Leninist) CPI(ML)
Coorg Organisation For Rural Development, Karnataka (CORD)
Darbar Sahitya Sansad
Delhi Grain Merchants Association
Delhi Hawkers Welfare Association
Delhi Science Forum (DSF)
Distributors Stockists Association, Hyderabad, Telangana
Empower India
Environment Support Group (ESG), Karnataka
Federation of Madras Merchants and Manufacturers Association, Chennai, Tamil Nadu
Federation of Traders Organisations of West Bengal
Feminist Learning Partnerships
Focus on the Global South
Food First Information and Action Network (FIAN), West Bengal
Forum against Free Trade Agreements
Forum Against oppression of Women, Bombay
Forum for IT Employees (FITE), Tamil Nadu and Karnataka
Free Software Movement, Karnataka
Free Software Movement of India (FSMI)
Gram Bharati Samiti (GBS), Jaipur
Haryana Vyapar Mandal, Panipat, Haryana
Hawkers Joint Action Committee
Hazards Centre, New Delhi
Himachal State Vyapar Mandal, Una, Himachal Pradesh
Holistic Approach for Peoples Empowerment (HOPE), Puducherry
IT For Change
India FDI Watch
Indian Social Action Forum (INSAF)
Indian Coordination Committee of Farmers movement (ICCFM)
Jamnagar Veopari Mahamandal, Jamnagar, Gujarat
Jan Abhiyan Sanstha, Himachal Pradesh
Jharkhand Small & Tiny Industries Association, Baidyanath, Jharkhand
Karaavali Karnataka Janaabhivriddhi Vedike, Mangalore
Karshaka Munnettam
Kerala Swatantra Matysa Thozhilali Federation (KSMTF)
Kerala Vyapari Vyavasai Ekopana Samithi, Calicut, Kerala
Kisan Morcha, Bikaner
Knowledge Commons
Krityanand UNESCO Club, Jharkhand
LABIA – A Queer Feminist LBT Collective, Mumbai
Malanad Karshaka Raksha Samithi, Kerala
Malda Merchants Chamber of Commerce, Malda, West Bengal
Malwa Chamber of Commerce & Industry, Indore, Madhya Pradesh
Mewat Shiksha Vikas Samiti, Alwar
NAW- National Alliance of Women
Nadi Ghati Morcha, Chhattisgarh
National Alliance of People’s Movements (NAPM)
National Coalition for Education
National Fish Workers Forum (NFF)
National Hawker Federation
National Working Group on Patent Laws and WTO- (NWGPL)
Nav Jagriti Collective, New Delhi
New Trade Union Initiative (NTUI)
Posco Pratirodh Sangram Samiti, Odisha
Prachi Surakshya Samiti, Odisha
Prantiya Udyog Vyapar Pratinidhi Mandal, Haldwani, Uttarakhand
Promotion Sustainable Development, India
Public Services International, India
Punjab Distributors Association
Punjab Pradesh Beopar Mandal
Rajasthan Khadya Pradarth Yyapar Mahasangh
Rashtriya Kisan Mahasangh
Shaheed Bhagat Singh Vichar Manch, Bihar
Small Business Congress
Swadeshi Andolan
Tamilnadu Vanigarsangalin Peravai
The Grains Rice & Oils Merchants Association, Navi Mumbai, Maharashtra
The Indian Chamber of Commerce, Guntur, Andhra Pradesh
The Poona Merchants chamber, Pune, Maharashtra
Toxics Watch Alliance
Universal Versatile Society
Upekshit Shikshan Vikas Pratishtan, Maharashtra
Uttar Bihar Vanijya & Udyog Parishad, Muzaffarpur, Bihar
Uttar Pradesh Udyog Vyapar Mandal, Kanpur, Uttar Pradesh
Vidarbha Chamber of Commerce & Industry, Akola, Maharashtra
Individuals
Abha Bhaiya, Jagori Rural Charitable Trust
Abhishek Joshi
Achin Vanaik, Retired Professor, Delhi University
Adv. Aradhna Bhargava, Kisan Sangharsh Samiti, Madhya Pradesh
Amarjit Kahlon
Amit Kumar, National Alliance of Peoples Movements (NAPM), Delhi
Amitava Mitra, NAPM,West Bengal
Anamitra Roychowdhury, Jawaharlal Nehru University, Delhi
Anand Mazgaonkar, Paryavaran Suraksha Samiti, Gujarat
Anil Chaudhary, Popular Education & Action Centre (PEACE)
Anjali Bharadwaj, National Campaign for People’s Right to Information (NCPRI)
Arul Doss, NAPM, Tamil Nadu
Aruna Rodrigues, Sunray Harvesters
Aruna Roy, Mazdoor Kisan Shakti Sangathan (MKSS)
Arundhati Dhuru, NAPM, Uttar Pradesh
Ashish Ranjan, Jan Jagran Shakti Sangathan
Ashok Verma, NAPM, Jharkhand
Basant Kumar Hetamsari, NAPM, Jharkhand
Benny Kuruvilla, Transnational Institute
Bhupender Singh Rawat, Jan SangharshVahini
Bilal Khan, Ghar Bachao Ghar Banao Andolan, Mumbai
Biswajit Dhar, Professor,Jawaharlal Nehru University (JNU), New Delhi
C.P. Chandrasekhar, Professor,Jawaharlal Nehru University (JNU), New Delhi
C.R. Neelakandan NAPM, Kerala
Chakravarthi Raghavan, Emeritus, South-North Development Monitor
Chandan Kumar, Rashtriya Hamal Panchayat
Cynthia Stephen, Independent Journalist and Development Policy Analyst
Dayamani Barla, Aadivasi-MoolnivasiAstivtva Raksha Samiti
Debal Deb, Odisha
Dinesh Abrol, Professor, Institute for Studies in Industrial Development (ISID), Delhi
Dr Binayak Sen, People’s Union for Civil Liberties (PUCL)
Dr. Smitha Francis, Institute For Studies In Industrial Development
Dr. Sunilam, Kisan Sangharsh Samiti, Madhya Pradesh
Dr.T.Swaminathan, Professor (Retd), Indian Institute of Technology, Madras
Eita Jyoti Bandyopadhyay, Indian Institute Of Science Education And Research (IISER ), Mohali
Eric Pinto, Green Brigade Goa
Faisal Khan, Khudai Khidmatgar
Gabriele Dietrich, Penn UrimayIyakkam, Madurai
Gautam Bandopadhyay, Nadi Ghati Morcha, Chhattisgarh
Geetha Ramakrishnan, Unorganised Sector Workers Federation
Geetha Nambisan
Guruwant Singh, NAPM, Punjab
Gurveen Kaur, Centre for Learning, Secunderabad
Himshi Singh, NAPM, Delhi
J S Walia, NAPM, Haryana
Jabar Singh, NAPM, Uttarakhand
Jayati Ghosh, Professor, Jawaharlal Nehru University (JNU), New Delhi
John Peruvanthanam, NAPM, Kerala
K.P.Sasi, Film maker
Kailash Meena, NAPM, Rajasthan
Kaladas Dahariya, RELAA and NAPM, Chhattisgarh
Kamal Nayan Kabra, Institute of Social Sciences, New Delhi
Kamayani Bali Mahabal
Kamayani Swami, Jan Jagran Shakti Sangathan
Kavita Srivastava, People’s Union for Civil Liberties (PUCL)
Kavitha Kuruganti, Alliance for Sustainable & Holistic Agriculture (ASHA)
Krishnakant, Paryavaran Suraksha Samiti, Gujarat
Lingraj Azad, Samajwadi Jan Parishad & Niyamgiri Suraksha Samiti, Odisha
Madhuresh Kumar, NAPM, Delhi
Mahendra Yadav, Kosi Navnirman Manch
Mahendra, NAPM, Uttar Pradesh
Maj Gen S.G.Vombatkere, (NAPM) & People’s Union For Civil Liberties (PUCL)
Manesh Gupta, NAPM, Uttar Pradesh
Medha Patkar, Narmada Bachao Andolan (NBA)
Meera Sanghamitra, NAPM, Telangana – Andhra Pradesh
Melton Paka Tauetia, Fusialofa
Mritiunjoy Mohanty, IIM Calcutta
Mini Mathew
Nanhu Prasad, NAPM, Delhi
Nikhil Dey, Mazdoor Kisan Shakti Sangathan (MKSS)
Niranjan Bharathi
P.Chennaiah, Andhra Pradesh Vyavasaya Vruthidarula Union (APVVU)
Pamela Philipose, Ombudsperson, The Wire.in
Panchali Ray, Jadavpur University
Ponniah Rajamanickam
Prabir Purkayastha, Chief Editor, Newsclick
Pradeep Esteves, Context India
Prafulla Samantara, Lok Shakti Abhiyan
Prasad Bagwe, Ghar Bachao Ghar Banao Andolan, Mumbai
Pravin Nadkar
Prof. Kusumam Joseph, NAPM, Kerala
Purushan Eloor, NAPM, Kerala
R. Padmini
Rahul De, Indian Institute of Management Bangalore
Rajendra Ravi, NAPM), Delhi
Rajesh Serupally, NAPM, Telangana – Andhra Pradesh
Rajinder Chaudhary, Former professor, M.D.University
Ramakrishnam Raju, United Forum for RTI NAPM
Rekha Pappu, Tata Institute of Social Sciences, Hyderabad
Richa Singh, Sangatin
Rita Manchanda
Ritu Dewan
Rohit Prajapati, Gujarat
S. Krishnaswamy, All India People’s Science Network(AIPSN)
Samar Bagchi, NAPM,West Bengal
Samson Nakkala, Gram Abhyudaya Mandali (GRAM)
Sandeep Pandey, Socialist Party
Sarang Haritha, Indian Institute of Management Bangalore
Satyaki Roy, Institute For Studies In Industrial Development
Sejal Dave
Shahida Murtaza
Shakun Doundiyakhed, SIEDS Bangalore
Shankar Singh Mazdoor Kisan Shakti Sangathan (MKSS),
Sharath Chelloor, NAPM, Kerala
Shinu Varkey, Assistant Professor, St Berchmans College
Sister Celia, Domestic Workers Union
Sister Dorothy, NAPM, Bihar
Sudeshna Sengupta, Working Peoples Charter
Suhas Kolhekar, Ghar Bachao Ghar Banao Andolan, Mumbai, Maharashtra
Sujata Patel, Indian Institute of Advanced Study
Sukla Sen, Mumbai
Suma Josson, Filmmaker, Mumbai
Sunita Rani, Domestic Workers Union
Suniti SR, Ghar Bachao Ghar Banao Andolan, Maharashtra
Suresh George, NAPM, Kerala
Suresh Rathor, NAPM, Uttar Pradesh
Swarupa Rani, Bhubaneswar
Swati Desai, Paryavaran Suraksha Samiti, Gujarat
Ujjawal Chaubey, NAPM, Bihar
Uma, NAPM, Delhi
Uma V Chandru
V D Majeendran, NAPM, Kerala
Vijay Prashad, LeftWord Books
Vilayodi Venugopal, NAPM, Kerala
Vimal Bhai, Matu Jan Sangathan
Vivek Monteiro, Centre of Indian Trade Unions (CITU), Maharastra
Xavier Dias, Khaan Kaneej Aur Adhikar
