Walmart CEO Doug McMillon has stated that the Flipkart-Walmart deal will create around 10 million jobs in India over a period of few years. This includes both direct and indirect jobs. The US-based retailer announced earlier this week that it will buy a 77 per cent stake in the Indian e-commerce major for $16 billion.
The deal not only allows both companies to benefit from each other's expertise, but will also boost the Indian economy in terms of job creation, increasing farmers' income and promoting national initiatives including 'Make in India', as per a joint statement by Walmart and Flipkart.
"As Walmart scales in India, the company will continue to partner to create sustained economic growth across agriculture, food and retail. Future investments will support national initiatives and will bring sustainable benefits to the country," Walmart stated.
Walmart India said that it will create jobs by developing supply chains and commercial opportunities, along with its investment which will create new direct jobs.
Also, Walmart’s collaboration with Flipkart will support small businesses by procuring directly from them. It said that it will support farmers by sourcing its inventory locally. The deal will also see significant inputs into the supply chain, with focus on cold storages, to check wastage of perishable agricultural produce.
The US retailer will also partner with Kirana owners in India to help them reform their retail practices and adopt digital transaction technologies.