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Walmart which invested USD 16 billion in Flipkart said it is commited to the Indian market and despite Indian government made changes in the FDI policy for E-commerce firms in the country.

This statement came after report by Morgan Stanley, which said that Walmart may quit Flipkart as the new Foreign Direct Investment Policy came into effect from February 1.

In a report titled ‘Assessing Flipkart Risk to Walmart EPS’ on February 4, said that “an exit is likely, not completely out of the question with the Indian e-commerce market becoming more complicated.”

Dirk Van den Berghe, Executive Vice President and Regional CEO Walmart Asia and Canada said that “Walmart’s and Flipkart’s commitment to India is deep and long term. Despite the recent changes in regulation, we remain optimistic about the country.”

He further said that, “We will continue to focus on serving customers, creating sustained economic and bringing sustainable benefits to the country, including employment generation, supporting small businesses and farmers and growth Indian exports to Walmart’s global markets.”

The government from February 1, tightened rules for e-commerce companies having foreign investment.

And also barred online websites like Amazon and Flipkart from selling products of companies where they hold stakes.

Banned exclusive marketing arrangements that could influence product price.The changed policy in online retail,issued by the Ministry of Commerce and Industry also said that companies have to offer equal services or facilities to all its vendors without any discrimination.

Last year, Walmart had completed acquisition of 77% stake in Flipkart for nearly about USD16 billion.

This deal gave the US retail major entry into the Indian e-commerce market.

-Sai Kumar