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Can Wal-Mart save the Indian economy?

Discussion in 'Central & South Asia' started by breeze, Sep 23, 2012.

  1. breeze

    breeze FULL MEMBER

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    The Indian government has been involved in some problematic back-and-forths over the idea of relaxing regulatory curbs on foreign chain stores and supermarkets opening in the country, but now with the incumbent government facing increasing economic pressure and scandal criticism reform is back on.

    Can Wal-Mart Save The Indian Economy?

    Wal-Mart Stores Inc. plans to open retail outlets in India in the next 12 to 18 months, the company said Friday, making it the first multinational to jump on the government’s decision to open the country’s huge retail market to foreign players.

    Raj Jain, the managing director of Bharti Wal-Mart, a joint venture that operates 17 wholesale shops in India, confirmed by email that Wal-Mart plans to open direct to consumer stores over the next 18 months, but declined to say how many.

    India announced last week that it would allow foreign firms to take a majority stake in multi-brand stores for the first time. The surprise decision cheered investors but cost the ruling Congress Party an important coalition ally.

    New Delhi first tried to enact the measure last year, but backed down in the face of resistance from coalition partners, badly damaging its credibility with global investors. Prior to the reversal, foreign retailers like Wal-Mart could only operate wholesale outlets.

    Opponents say the move will cost Indians jobs and decimate millions of mom-and-pop shops. Advocates say welcoming players like Wal-Mart is necessary to attract the investment needed for India to modernize its food supply chains, reduce waste and bring down spiraling food prices.

    Wal-Mart to open Indian stores in 12 to 18 months - The Globe and Mail

    India saying good-bye to private Indian businesses and saying hello to giant foreign corporations.
     
  2. ajtr

    ajtr BANNED

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    Indians being indians will bankrupt walmart in india.Indian kirana stores and mandis are here to stay.
     
  3. samr23

    samr23 FULL MEMBER

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    No it can't, Indian retail industry is 400 billions and these people can only help make process more efficient and bring in some fdi. This is not enough to save Indian economy. Yes if they get all 100% products from India, then there can be some larger impact. Msnufacturing is whats needed.
     
  4. djsjs

    djsjs FULL MEMBER

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    you would find everything there "MADE IN CHINA" ,so wal-mart is a big pest......stop it !!!
     
  5. doublemaster

    doublemaster FULL MEMBER

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    Trust me, once wallmart opened all who hated will be the one first to enter.
     
  6. longyi

    longyi FULL MEMBER

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    I know Walmart can lift India's economy in terms of numbers but am skeptical whether it can help the people on the street level. There were and are many debates about the subject of super store within the US as well and there are still many locales in the country forbid the opening of such stores.

    Let me give one actual example: More than two decades ago, around the time Home Depot started opening its super stores, New York City had tens of thousands of hardware and housewares mom and pop stores and now there are only a couple of thousands. Yes it created many jobs and enriched many investors but it also eliminated many jobs and opportunities as well.

    On the other hand McDonald received the same protests and got in eventually, but it didn't seem to hurt other food establishments and in fact it helped others to bring a sort of food culture into the city. Go figure.
     
  7. Avisheik

    Avisheik SENIOR MEMBER

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    I doubt so, mom-and-pop shops are still essential as they are convenient. Those who will shop at wal mart will be the upper class and the upper-middle class. They usually do not shop at mom and pop shops anyway.
     
  8. Arya Desa

    Arya Desa BANNED

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    Why do you assume that we hate China? China and India are brothers against the Western attack. Asians will soon sit down at the table of brotherhood and we will restore asian hegemony. This can only been done once we stop the hate against each other and face the imperialistic force that is the white man.
     
  9. Chinese-Dragon

    Chinese-Dragon PDF THINK TANK: ANALYST

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    It was the Indian Defence Minister himself, who said that China is India's "number 1 enemy".

    You know the most powerful person in India is a white person right? Sonia?

    Your intention seems to be good, but that's not how it works in this region of the world.
     
  10. Arya Desa

    Arya Desa BANNED

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    In India to get funding you must be sensational. Regardless India must abandon this. I know what he said was extremely hurtful and idiotic beyond all beliefs but we must get past these kinks in the road. He is a fool, let us not stoop to his level.


    Theoretically Sonia has the most power in the country like in theory our President has more power than our Prime Minster but in all actuality she is quite powerless. Furthermore, her days in power are coming to an end.
     
  11. djsjs

    djsjs FULL MEMBER

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    wow.i'm not talking about China & India relationship.i mean wal-mart would give no help for India economy,many people will lose jobs.
     
  12. Arya Desa

    Arya Desa BANNED

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    Sorry I misread what you wrote. Please do not take it negatively. On the most superficial level, it would seem as if this company is taking our jobs and wealth. But, if you dig deeper one realizes that there are many benefits. One such benefit is the setting up of cold storage and other infrastructure that will help to mitigate losses
     
  13. arp2041

    arp2041 BANNED

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    Wal Mart is not coming to do any social work here, they are a $450 billion company that only means business, they are not here to bring benefits to the Indian economy as has been shouted the world over, but is here to tap a billion people market which is the second fastest growing economy. I have no doubt in saying this that Wal Mart will benefit more from India than the other way around.
     
  14. Jade

    Jade SENIOR MEMBER

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    Initially yes, but latter no. Remember India too has abundant cheap labor. It would be more cost effective for Walmart to produce products in India then import them from China.

    On the topic: Walmart entry will immensely help Indian economy and the least of all reasons is the money that Walmart invests. The more important reasons are fast and cost effective supply chain that could change the whole logistic sector in India, significant boost to manufacturing sector, more jobs and cheaper products to consumer.

    Moreover, these reforms means India means business and a green signal for other FDI in other sectors.
     
  15. INDIC

    INDIC BANNED

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    India market is already flooded with Chinese goods, you can find them even at roadside hawker. Main help would be proper warehousing of food products like vegetables and foodgrains.