How will the Flipkart Walmart deal improve the job market in India?

The Indian corporate sector, especially the startup space is totally euphoric about the announcement of Flipkart Walmart deal. The quantum of the deal is huge and going by the details, it sure seems promising. Moreover, it is indeed a big celebration of the Indian entrepreneurial spirit. Here, we won’t evaluate the commercials of the deal, but instead, focus on how this deal could be a potential employment generator for India.

Walmart is a retail behemoth, while Flipkart is India’s answer to the e-commerce giant, Amazon. The synergies to be derived out of this deal are many. Flipkart’s biggest competitor Amazon has forayed into grocery and other offbeat segments, while the former is yet to test the waters.

Walmart’s backing with help Flipkart to step into the brick and mortar stores and grocery segment. On the other hand, after a failed attempt in a partnership with Bharti Airtel, Walmart has planned for another innings, this time in the retail space with Indian e-commerce biggie, Flipkart.

According to Walmart CEO, Doug Mc Millon, this deal will create around 10 million jobs over the next 10 years, both direct and indirect, in India. The major sectors that will benefit out of this deal are Agriculture, Food, Logistics and Retail.  

The Flipkart Walmart deal will have the giants open 50 stores in five years in India and more investment would mean more jobs.  In fact, professional networking site Linked In already has new job listings by Walmart India in the fields of engineering, computer science, communication and finance.

The various sectors that will benefit out of the deal are:

  • Supply Chain and procurement: This deal will see direct procurement from producers. There can be a massive improvement in supply chain and warehousing, with focus on cold storages. The facilities will be upped to curtail wastage of perishable agricultural produce. The retail facilities will also support the farmer and small businesses by procuring inventory directly from them. This will actively increase income for farmers and small businesses.
  • Retail: Walmart is expected to bring about innovation in the retail space. They aim at partnering with kirana owners or local mom and pop shops in India to help them to modernize their retail practices and embrace digital transaction technologies.
  • Sales and Marketing: Flipkart is planning an offline presence in grocery and household goods through a partnership with Walmart. With few retail outlets across the country, there will be many people involved in sales and marketing jobs, store management, inventory handling and visual merchandising jobs available in the years to come.
  • Promoting the Make in India campaign: The Flipkart Walmart deal aims to sell locally produced goods in the food and grocery segment which means manufacturing in India will receive a boost. True to the Make in India campaign, domestic production will generate a lot of employment across segments.
  • Logistics: Flipkart which already has its logistics arm, e-Kart, is planning to up its logistics arm. The company has already proposed 100-acre Logistics Park, where the firm is set to invest millions of dollars and employ approximately 20,000 people, directly and indirectly.

Promising times ahead

Whether Flipkart Walmart deal will see as much success as expected, is something that only time will tell. However, the joint venture is sure to be a game changer for the Indian job market, particularly owing to the magnitude of the deal. What’s even more praiseworthy is that the jobs will not only be created for the urban educated youth but also for those at the grass root level. After all, the real measure of a nation’s success lies in inclusive growth.