Don't count Walmart out just yet.

As Amazon continues to expand its dominance over the e-commerce space, the world's largest retailer, Walmart, is now in the process of closing a deal to acquire Flipkart, the leading online retailer in India. Walmart is looking to claim part of the Indian retail market, which is currently sitting at $670 billion ($20 billion of that from online sales).

[UPDATE: In breaking news, today it was announced that Amazon has submitted a formal bid for a 60 percent stake in Flipkart, trying to upend Walmart's negotiations with the company.]

Launched in 2007, Flipkart is valued at about $14 billion, and has a number of serious retail successes under its belt. With a 70 percent market share of India's online fashion business, Flipkart also owns mobile payment app PhonePe as well as eBay in India. Longterm, Flipkart is believed to be an incredibly valuable asset for the internet economy in the country.

What's also worth noting is India is still a relatively untapped market, one that is growing at an increasingly rapid rate. Whereas in 2016 India had 14 percent of its user base shopping online (that is, 60 million online shoppers), reports by Morgan Stanley expect this number to rise to over 50 percent by 2026.

For retailers like Amazon and Walmart, an acquisition of e-commerce powerhouse Flipkart only means worldwide dominance in retail is closer than ever. After having missed out on China's e-commerce boom, it is clear Walmart does not want to fall to Amazon even more so in the global space.

This Flipkart acquisition will give Walmart a much needed foot in the door for online retail, and may put pressure on Amazon to make its presence known in the Indian market in other ways. It's been reported that Amazon is even developing new products specific for the Indian market, and is even investing in original Bollywood movie studio content.

For consumers, this deal is a positive one -- as Satish Meena, senior analyst in New Delhi explains, "There is more money and more expertise coming into the system. And customers will get more products at a lower price."

What's more? Walmart suppliers have reduced greenhouse gas emissions by more than 20 million metric tons because of the company's initiative, Project Gigaton. India's consumers and the country as a whole may benefit from this deal -- more than most would have initially dreamed.