Flipkart warns new FDI rules for e-commerce, will cause 'significant customer disruption'

Agencies
January 30, 2019

New Delhi, Jan 30: Walmart Inc’s online retailer Flipkart has told the government the company faces the risk of “significant customer disruption” if the implementation of new curbs for e-commerce is not delayed by six months, a source told news agency.

India’s new foreign investment restrictions will, from February 1, bar e-commerce companies from selling products from firms in which they have an equity interest and also ban them from reaching deals with sellers to only sell on one platform.

In a letter to India’s industries department earlier this month, Flipkart Chief Executive Kalyan Krishnamurthy said the rules required the company to assess “all elements” of its business operations, according to a person privy to the communication.

“Redesigning numerous elements of our technology systems to ensure that we can validate and evidence our compliance, in such a compressed period of time, has caused us to divert significant resources,” Krishnamurthy wrote in the letter. The new curbs were only announced on December 26.

He also said the regulations could cause “significant customer disruption” if the deadline for compliance wasn’t extended. He asked for a six-month delay.

The contents of Flipkart’s letter have not been previously reported. Flipkart declined to comment.

Officials have said the government is unlikely to change the policy’s implementation date. The industries department declined to comment for this article.

The policy move has jolted Walmart, which last year invested $16 billion in Flipkart in its biggest ever deal, and Amazon, which has committed $5.5 billion in India investments.

Industry sources have said the new policy would raise compliance costs and force Amazon and Flipkart to review their business arrangements in the country.

Flipkart and Amazon have both started working on approaching thousands of sellers on their platforms to ensure the companies comply with the regulations, three sources aware of the matter said, even as they seek a deadline extension.

For Flipkart, the process would take five-to-six months, said one of the sources, who told Reuters: “the company is right now focusing on working with sellers (for compliance), all rest is on the back burner”.

Unfair marketplace?

India’s small traders had complained that large e-commerce companies used their control over inventory from their affiliates to create an unfair marketplace that allowed them to offer deep discounts on some products. Such arrangements would be barred under the new policy.

Amazon told Reuters last week it had written to the government to seek an extension of four months. With more than 400,000 sellers and “hundreds of thousands of transactions” daily, Amazon said it needed the time to understand the policy.

Flipkart, in its letter, said the group has more than 80,000 employees and contractors and the number of shipments and packages which move daily were between 500,000 and 600,000.

The new policy “imposes several new conditions, which we believe could potentially have undesirable impacts on the continued growth of e-commerce in India”, Krishnamurthy wrote.

The company added that it wanted to work with the federal government to promote “pro-growth policies” which can help develop the e-commerce sector. Before the policy change, Morgan Stanley estimated India’s e-commerce market would grow 30 percent a year to $200 billion in the 10 years up to 2027.

The US government has been concerned and earlier this month told Indian officials to protect Walmart and Amazon’s investments in the country, citing “good relations” between the two countries, Reuters reported on Thursday.

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News Network
June 16,2020

New Delhi, June 16: Tensions along the Line of Control border between India and China have spiked with an Indian army officer and two soldiers killed in the Galwan area of Ladakh, the Indian army said in a statement on Tuesday.

This is the first time in decades that a clash involving casualties has taken place on the 3,488 kilometre border between India and China.

"During the de-escalation process underway in the Galwan Valley, a violent face-off took place yesterday night with casualties. The loss of lives on the Indian side includes an officer and two soldiers. Senior military officials of the two sides are currently meeting at the venue to defuse the situation," said an official statement.

The two sides had made headway in talks last week with army chief General MM Naravane saying disengagement was in progress. The development had come after weeks of tension, including an incident in which patrolling soldiers from the two sides came to blows on the banks of Pangong Lake, resulting in injuries.

The two armies have since thinned out some forces in a positive signal but soldiers, tanks and other armoured carriers remained heavily deployed in the high-altitude region, an official had said.

India and China fought a brief border war in 1962 and have not been able to settle their border despite two decades of talks. Both claim thousands of kilometres of territory and patrols along the undemarcated Line of Actual Control - the de-facto border - often run into each other, leading to tensions. 

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Angry Indian
 - 
Tuesday, 16 Jun 2020

where is our angry desh bakth RSS and sanghi...hiding in rat hole or @%#hole...now you can show your 56 inch chest to chinese...when pakistan destroyed our two fighter jet that time i relised we are making an monkey army not indian army...still time exist, still we have courage army...but we lack leader...we have maron PM...and some dog follower..they only know to bark in media and whatsapp...in reality they are just real na pustak...

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Agencies
May 21,2020

More than 50 million people in India do not have access to effective handwashing, putting them at a greater risk of acquiring and transmitting the novel coronavirus, according to a study.

Researchers from the Institute for Health Metrics and Evaluation (IHME) at the University of Washington in the US found that without access to soap and clean water, over 2 billion people in low- and middle-income nations -- a quarter of the world's population -- have a greater likelihood of transmitting the coronavirus than those in wealthy countries.

According to the study, published in the journal Environmental Health Perspectives, more than 50 per cent of the people in sub-Saharan Africa and Oceania lacked access to effective handwashing.

"Handwashing is one of the key measures to prevent COVID transmission, yet it is distressing that access is unavailable in many countries that also have limited health care capacity," said Michael Brauer, a professor at IHME.

The study found that in 46 countries, more than half of people lacked access to soap and clean water.

In India, Pakistan, China, Bangladesh, Nigeria, Ethiopia, Democratic Republic of the Congo, and Indonesia, more than 50 million persons in each country were estimated to be without handwashing access, according to the study.

"Temporary fixes, such as hand sanitizer or water trucks, are just that -- temporary fixes," Brauer said.

"But implementing long-term solutions is needed to protect against COVID and the more than 700,000 deaths each year due to poor handwashing access," Brauer said.

He noted that even with 25 per cent of the world's population lacking access to effective handwashing facilities, there have been "substantial improvements in many countries" between 1990 and 2019.

Those countries include Saudi Arabia, Morocco, Nepal, and Tanzania, which have improved their nations' sanitation, the researchers said.

The study does not estimate access to handwashing facilities in non-household settings such as schools, workplaces, health care facilities, and other public locations such as markets.

Earlier this month, the World Health Organization predicted 190,000 people in Africa could die of COVID-19 in the first year of the pandemic, and that upward of 44 million of the continent's 1.3 billion people could be infected with the coronavirus, the researchers said. 

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News Network
July 14,2020

New Delhi, Jul 14: India's COVID-19 tally breached the 9 lakh mark as 28,498 new coronavirus cases were reported in the last 24 hours, informed the Union Ministry of Health and Family Welfare on Tuesday.

As per the Health Ministry, there are a total of 9,06,752 coronavirus cases in the country of which 3,11,565 patients are active cases.

5,71,459 patients have been cured/discharged while one patient has been migrated, the Ministry informed further.

553 more deaths due to COVID-19 were reported in the last 24 hours in the country, taking the number of patients succumbing to the virus to 23,727.

The Centre further informed that India's recovery rate from COVID-19 stands at 63.02 per cent while the recoveries and deaths ratio stood at 96.01 per cent and 3.99 per cent respectively.

As per the Ministry, Maharashtra -- the worst-affected state from the infection -- has a total of 2,60,924 COVID-19 cases and 10,482 fatalities. While Tamil Nadu has a tally of 1,42,798 cases and 2,032 deaths due to COVID-19.

Delhi has reported a total of 1,13,740 cases and 3,411 deaths due to COVID-19.

As per the information provided by the Indian Council of Medical Research (ICMR) 1,20,92,503 samples have been tested for COVID-19 till July 13, of these 2,86,247 samples were tested on Monday.

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