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Walmart CEO writes to PM, seeks open, stable biz environment

New Delhi: The world's largest retailer Walmart CEO has written to Prime Minister Narendra Modi seeking stable and open business environment that protects investments, and demanded a cut in licenses and time required to open a store in India.

Doug McMillon, in the two-page letter dated October 11, also raised data privacy and localisation requirement, and wanted corporations to be allowed to transfer customer data across borders.

"A stable, welcoming regulatory environment will allow us to continue to invest in creating more jobs and building infrastructure that benefits the Indian suppliers and customers," he wrote. Recalling his meeting with Modi during the Prime Minister's US trip last month, McMillon said Walmart was committed to investing in India and rising sourcing from the country for its global operations.

After investing USD 16 billion to acquire India's largest e-commere, Walmart-owned Flipkart and other online retailers were forced to overhaul their business model in line with changed rules governing foreign direct investment.

Reacting to the letter, domestic retailers body Confederation of All India Traders (CAIT) termed the Walmart letter as "a pressure tactics".

Stating that there is no instability in the economic foundations or policy structure of the government, CAIT said the letter was a pressure tactics to find a headway into the Rs 45 lakh crore business.

In his letter to the Prime Minister, McMillon said high numbers of overlapping permits are a challenge in the retail sector. "On average, we currently need more than 45 permits and three years to open a new Best Price store. This is significantly longer than it takes in the US and many markets in which we operate".

New Best Price store, he said, contributes to 2,000 direct and indirect jobs. "Ease store in the pipeline is slowing our ability to serve customers and create new jobs," he said. "We would hope to work with your government to fine effective ways to streamline licensing and permitting procedures for retail a well." He wanted 'single window' clearance model for retail stores.

Acknowledging the government's concerns regarding data privacy of Indian citizens, he, however, wanted businesses to be allowed to transfer overseas the data generated in the country.

"Flipkart and PhonePe have invested in local data infrastructure to ensure Indians can benefit from the growth of the data economy in India," he said. "As a company that has selected India as a hub for our global retail technology innovation, we also believe it is important to allow businesses appropriate means to transfer data across borders."

Stating that regulators may have concerns, he said Walmart was willing to work with the government to ensure details of policy do not unnecessarily have a negative impact on the industry.

The letter comes at a time when the world's largest brick-and-mortar retailer is preparing to launch FarmerMart in India. The food retail platform, under Flipkart, will be selling locally-produced and packaged food products directly to

customers.

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