Indian opportunity begins to unfold for Walmart

Listening to the debate over the years about whether India should allow foreign direct investment in its retail industry sounded an awful lot like the opposition Walmart has dealt with for decades in the United States.

There were concerns about the impact the company and other global players would have on small businesses, the labor market and sourcing of products. Walmart countered, as it always has, that it would have a beneficial impact on the economy, creating good paying jobs, helping the economy and elevating the standard of living for lower income consumers by improving their access to low cost products. Now that Indian government has given foreign companies the greenlight to own a 51% stake retail businesses, the marketplace will have an opportunity to see if Walmart can deliver on the grand vision put forth during the foreign direct investment debate that its presence will make India a better place.

Commenting on the recent decision by the Indian government, Raj Jain, Walmart India president and managing director and CEO of Bharti Walmart called the change in investment rules an important first step while stopping short of elaborating on how the decision will affect Walmart growth plans.

“We are grateful that the government has realized and appreciated the value that we will bring to strengthen the Indian economy. This change will positively impact the Indian market and our people. It will also contribute toward India’s image as a one of the world’s fastest growing economies and a welcoming destination for international businesses,” Jain said in a prepared statement. “However, we will need to study the conditions and the finer details of the new policy and the impact that it will have on our ability to do business in India.”

Currently, the Bharti Walmart joint venture operates nine stores under the banner of Best Price Modern Wholesale in India and by year end another 10 to 12 units are slated to open.

“We are willing and able to invest in back-end infrastructure that will help reduce wastage of farm produce, improve the livelihood of farmers, lower prices of products and ease supply-side inflation, thus saving people money so they can live better,” Jain said. “We also believe that extending the scope of this policy beyond cities with 1 million in population will bring immense benefits in the form of jobs and access to quality merchandise at great prices. It will also supplement our efforts to build an efficient and sustainable supply chain with regional geographical synergies.”