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Subject
Offline retail sector.
Significance
Reliance Industries Limited (RIL), India’s largest conglomerate, is planning to divest up to 26% of equity in Reliance Retail to a foreign e-commerce entity. While talks initiated with China’s Alibaba reportedly collapsed over differences in valuation, those with Amazon are reportedly under way, though neither side is willing to comment on the matter.
Impacts
RIL’s strategy could hurt small retail that provides household income and jobs to hundreds of millions of Indians.
Overall, small retailers favour the ruling Bharatiya Janata Party, which will therefore watch developments closely.
Customers will welcome a more seamless online-offline shopping experience, provided costs are manageable.
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2019
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