Walmart was moving its wings to India in 2011 and abruptly turns in to it to a big political agenda. For now this topic is postpone for some time. What would be the situation if Walmart starts its services in India in 2012?
The idea of Walmart moving into India is a good one. But there are always pros and cons associated with such investments.
I believe we all have a clue about the pros so i would like to say, what happens if walmart starts selling everything in India most of them coming from.. possibly China? Is this good for the Indian economy or otherwise? What about the small businesses, mom and pops?
These are the pertinent issues been discussed in India that has halted the entrance of Walmart into the worlds second largest country.
Even people in the U.S moan a lot about Walmart but of course they never had success stories to tell in countries like Japan just as i heard.
Recently the Indian Govt has shown interest in multinational retail outlets or FDI (Foreign Direct Investment). The process got delayed due to political issues and non acceptance by the state govt. However, now the Indian govt. is trying to work around this issue. The govt has also recently proposed that the state govt. will be given choice to decide if they want Walmart, IKEA or Carefour to set up their store within their state. But, this decision will be taken and approved only once the presidential election in the county is over which is planned for this month.
There is a certain possibility of outcome that whenever WalMart will enter Indian market the local retailers will face heavy obstructions in selling their products and many will soon be out of business. Ministers faced lot of revolt against the decision of FDI from these communities but still the decision rests with them. Let us see what will be the outcome.