Walmart, an e-commerce mammoth from the U.S, has come into the business with an Indian e-commerce company, Flipkart. The deal will develop a partnership between the two companies. Walmart has purchased 77 percent of Flipkart’s shares which will oust founder and CEO, Sachin Bansal.

The mega retail company, Walmart, previously wanted to enter the Indian market, but some tough foreign investment policies restricted them from expanding their services there. However, this time the deal has been sealed after the agreement between the companies.

Walmart [VIDEO]will acquire $16 Billion of the Bangalore based company which is the world’s biggest e-commerce deal to date.

Walmart’s entry in India will give tough competition to its rival Amazon which set its feet in India back in February of 2012.

Also, according to CNBC, the Japanese investment bank, Softbank, has planned to sell 20 percent of its shares, in Flipkart, to Walmart. This deal is yet to be completed, but it’s certain that it’s imminent.

Recently, Walmart [VIDEO]and Flipkart’s CEO held a meeting with fair trade regulatory of India, CCI, to apprise them about the fair deal between the e-commerce companies.

Protests in India

It’s good news for Indian citizens as there are a lots benefits for them in this deal such as low price, better tech. Development, better e-marketing, etc. However, the deal is also a complete nightmare for some people in India.

Indian online retailers have joined forces to boycott this deal as it would lead to a massive job loss in the nation.

India is already facing an employment crisis and this deal would certainly exacerbate things. Opposing the deal, the Confederation of All India Traders (CAIT) has written to Commerce Minister of India Suresh Prabhu, seeking to know the steps being taken by the government to scrutinize the deal.

Increased competition

Flipkart was giving competition to other online shopping companies in India like Amazon, Snapdeal, Ebay, etc., but after this $16 Billion deal with Flipkart, other online e-commerce companies will definitely face tough competition like never before.

Walmart is known to kill small businesses wherever they go, so it would likely produce the same effects in India. The US-based company would be able to sell their own products at cheaper rates in India and that’s what makes other e-commerce companies worried. Overall, this deal is both boon and bane for the Indian economy,