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Tuesday, May 21, 2024

World’s richest man faces India’s richest man in retail battle

The row is the latest development in a prolonged battle for dominance in India between Reliance, owned by Asia's richest man Mukesh Ambani, and Amazon, whose founder Jeff Bezos is the world's wealthiest person.

Indian conglomerate Reliance has dismissed Amazon’s push to delay its acquisition of domestic retail giant Future Group, despite an arbitration panel suspending the deal following objections by the US online titan.

The row is the latest development in a prolonged battle for dominance in India between Reliance, owned by Asia’s richest man Mukesh Ambani, and Amazon, whose founder Jeff Bezos is the world’s wealthiest person.

Read more: Mukesh Ambani to battle Amazon, Walmart in e-commerce

Amazon, which owned a stake in one of Future Group’s firms that reportedly included an option to buy into the flagship company, claims that the $3.4-billion Reliance deal, announced in August, amounted to a breach of contract.

After an arbitration panel ordered the deal to be put on hold following Amazon’s request, Reliance said late Sunday that it would nevertheless “enforce its rights and complete the transaction in terms of the scheme and agreement with Future group without any delay”.

Reliance’s retail subsidiary RRVL said in a statement that it had followed “proper legal advice” before agreeing to buy Future Group, adding that the deal was “fully enforceable under Indian Law”.

Reliance, Amazon and Walmart-backed Flipkart have been locked in a frenzied contest for a share of India’s lucrative online market.

The acquisition of Future Group, which owns some of India’s best-known supermarket brands such as Big Bazaar, would strengthen Reliance’s presence in the hugely competitive e-commerce sector.

Read more: Reliance debt free after Facebook, Saudi deals: Ambani

The arbitration panel has 90 days to give a final verdict on the Reliance-Future deal.

India buys Rafale jets from France

The first five Rafale fighter jets bought from France in a multi-billion-dollar deal landed in India in July, and the defence minister used their arrival to launch a veiled warning to neighbouring China over territorial tensions.

A water-cannon guard of honour greeted the five jets when they landed at the Ambala air base in Haryana state. India has bought 36 Rafale fighters from France in a deal estimated to be worth $9.4 billion. All are scheduled to be delivered by the end of 2021.

The $9.4 billion deal, has been overshadowed by corruption allegations levelled by the opposition Congress party although Indian Prime Minister Narendra Modi has rejected the claims.

The controversy over the deal in India stems from the naming of Reliance group — a conglomerate owned by billionaire Anil Ambani that has little experience in aviation — as Dassault’s local partner.

Delivery of the Rafale jets — 36 of which were ordered by India in September 2016 — officially began in October but the planes stayed in France for training of the pilots and mechanics.

“This is going to add a great deal of strength to our airpower and defence preparedness but it is also a powerful symbol of our strategic partnership between France and India,” said India’s ambassador to France Jawed Ashraf.

Read more: JF-17 vs Rafale: Why Pakistan’s JF-17 is a Serious Threat to Indian Rafale Jets?

An intense nationwide spotlight on the combat jets has been sharpened by a deadly border standoff with China.

Prime Minister Narendra Modi welcomed the jets with a tweet in Sanskrit: “There is no sacrifice like the national defence; there is no good deed like the national defence; there is no practice like national defence.”

Defence Minister Rajnath Singh said the arrival of the fighter jets marked “the beginning of a new era in our military history”.

The jets will make the Indian Air Force “much stronger to deter any threat that may be posed on our country”, he added in a series of tweets.

“If it is anyone who should be worried about or critical about this new capability of the Indian Air Force, it should be those who want to threaten our territorial integrity,” Singh said.

Singh did not directly name China, but media and observers said his comments were clearly aimed at the neighbouring giant.

Read more: India celebrates arrival of Rafale fighter jets

Security was tight around Ambala air base for the jets’ arrival, with local residents warned not to stand on their roofs to take photos or shoot video, local media reported.

Indian and Chinese forces have been in a six-week-long standoff on their Himalayan border since a hand-to-hand battle in which 20 Indian troops were killed. China also suffered casualties in the showdown but has not given figures.

The two sides blame each other for the clash in the Ladakh region and have since moved thousands of troops there while pursuing talks that they say aim to ease the tensions.

Read more: India, China and Pakistan tensions – Impact on Global Order

India acknowledges it is behind China and other key nations in military firepower, and the purchase of the Rafale jets is one of many made in a bid to bolster its 1.4 million-strong army.

New Delhi has also been eager to update its ageing fighter-jet force amid tensions with nuclear-armed neighbours China and Pakistan.

Sameer Patil, an international security studies expert at the Gateway House think-tank, said the jets were a “much-needed capacity booster”.

“It will help India to deal with the heightened nature of the Chinese threat, as it becomes clear that the current territorial stand-off in Ladakh will stretch into the winter months.”

The purchase of the French jets marked a significant shift in India’s traditional preference for Russian defence equipment.

The main opposition Congress party had alleged corruption in the deal but the government strongly denied any misconduct and a top court said there was no evidence for an investigation.

Read more: India-China escalating tensions: French fighter jets en route to New Delhi

French firm Dassault is in competition to sell more of the jets to India, which has said it will need more than 150 additional combat aircraft for its navy and air force

AFP with additional input by GVS News Desk