The deal is the biggest M&A (merger and acquisition) in India so far and marks the entry of Walmart into the Indian retail business.
Amazon has expanded aggressively since it entered the Indian market in 2013.
Nowhere in the world, Walmart has a market place model, " Mr Mahajan said in a letter written to the Prime Minister.
The deal all but assures an ongoing global rivalry between Walmart and Amazon.
According to the report in Times of India, among those turning dollar millionaires might be Sameer Nigam, CEO and founder of PhonePe, the payment arm of Flipkart, Amod Malviya, former chief technology officer, Sujeet Kumar, former president of operations, Vaibform Udaan.
S&P lowered Walmart's outlook to negative from stable, citing increasing leverage and risks stemming from the company's spending to expand online and globally as it continues its share buyback program.
Flipkart co-founder Sachin Bansal exited the business by selling his entire stake of over 5 percent for around Rs 7,000 crore to Walmart. The $16 billion (roughly Rs. 1.07 lakh crores) acquisition keeps Walmart in step with Amazon as the two behemoths look to expand in India, with 1.3 billion people and a fast-growing economy. "And it fits right in with our strategy", Judith McKenna, Walmart's global chief executive officer, said in a phone interview. Fashion was the only category in which Flipkart maintained a significant edge.
Biotechnology major Biocon Chairperson Kiran Mazumdar-Shaw said the deal was an endorsement for India's first e-tailing company.
The deal represents a missed opportunity for Amazon CEO Jeff Bezos, who has also failed to create a meaningful presence in China.
To get an early advantage in the nascent grocery industry in India, Future Group is all set to launch e-commerce app for grocery delivery offering the daily and weekly requirements to consumers. India is the next big potential prize for global retailers after the United States and China, where foreign retailers have made little progress against Alibaba Group Holding.
Flipkarts sales grew more than 50 per cent in the fiscal year ended March 31, 2018, to Dollars 4.6 billion, Walmart said.
Walmart said on Wednesday it reached a $16 billion deal to buy a majority stake in Flipkart, India's leading e-commerce platform, in a sizable bet on a vibrant but risky new market. Last month, the company agreed to cede control of its United Kingdom grocery chain, Asda, merging it with British rival J Sainsbury.
Lee also expects the competition getting aggressive as Amazon counter-offered Walmart for a stake in Flipkart.
"Flipkart will diversify its inventory to attract more Indian consumer segments that haven't started shopping online", said Lee.