By Shreya Maskara
American giant Walmart tried to pacify fears surrounding its acquisition of Flipkart by stating that the deal will boost the Indian economy, by adding jobs and local sourcing. Meanwhile, the Indian government is attempting to establish a definition for “shell companies”, to help agencies and departments in their quest to crack down upon the same.
Walmart says Flipkart acquisition will create jobs
After the announcement of the $16 billion deal between Flipkart and Walmart, the US giant pacified fears by stating that the deal will boost the Indian economy by creating millions of jobs, and establishing local sourcing of goods.
Walmart chief executive Doug McMillon said the company could potentially generate over 10 million jobs over a “period of years”, although he hesitated to put a “timeline” on the same.
Centre issues crackdown on shell companies
As multiple agencies and regulators across the country are trying to crack down on firms suspected only to exist on paper, the government is trying to establish an official definition of such “shell companies”, to help investigations. The term is usually used to define companies set up merely for financial fraud and maneuverers.
The Corporate Affairs Ministry, the Finance Ministry, Sebi, and the RBI will discuss the suggestions received from a multi-agency task force, and the suggestions may also be discussed at the level of the Financial Stability and Development Council (FSDC), according to officials.
“A number of entities accused of using shell companies for money laundering and other financial wrongdoings have challenged the regulatory action against them in recent months and there is a feeling that all regulatory gaps must be filled to avoid delay in bringing the guilty to book,” officials said.
India largest remittance-receiving country
Migrant Indian workers worldwide sent back over $69 billion in 2017, making India the largest remittance receiving country in the world, according to a report released on Sunday.
The report “RemitSCOPE – Remittance markets and opportunities – Asia and the Pacific”, highlighted India, China, and the Philippines as the three largest remittance-receiving countries in the world.
Government departments and the Swachh Bharat Mission
Rs. 16,500 crore has been earmarked by 71 governmental ministries and departments of the central government for the implementation of the Swachh Bharat Mission. The 2018-19 plan was launched by the Cabinet Secretary P K Sinha at a meeting of Union secretaries and senior officials on May 11. The earmarked amount is over the budget of several ministries, including the Ministry of Drinking Water and Sanitation of Swachh Bharat Mission.
An official statement released by the Ministry said, “The cabinet secretary emphasised that all secretaries needed to personally monitor implementation of SAP on a regular basis. He said each ministry should look beyond its own programmes and schemes, and bring innovation in the implementation of SAP.”
Shreya Maskara is a senior copy editor at Qrius