Feb 20, 2019
Walmart expresses disappointment with India’s new FDI regulations
Feb 20, 2019
Walmart’s CEO Doug McMillon has voiced his disappointment that the Indian government has changed its foreign direct investment norms for e-commerce without engaging in a dialogue with his business but remains committed to the country.
“We were disappointed in a recent change in law and the lack of consultation, but the team has worked to ensure we are in compliance with the new rules,” said McMillon in an investor call on February 19. “We hope to have an effective productive dialogue related to future changes that happen.”
However, McMillon remained positive concerning the business’ recent acquisition of the Indian e-commerce platform Flipkart. “The things that happened have been disappointing in some ways, but they haven’t shaken our confidence and excitement about what this is going to be to the company long term,” said McMillon. This echoed the sentiment of Flipkart’s CEO, Kalyan Krishnamurthy, in a recent circular he sent to his employees to assure them that, despite media speculation, Walmart has no plans to abandon its new investment.
Walmart may have had to re-evaluate its new business Flipkart only months after acquiring it but McMillon is confident for the future. Walmart announced its earnings for the fourth financial quarter which ended in January and reported a 3.1 percent revenue increase. The results included Flipkart’s financials for the entire quarter for the first time.
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