Why has Walmart failed to enter the Indian market all these years? - letsdiskuss
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Sameer Kumar

Software engineer at HCL technologies | Posted on | Share-Market-Finance

Why has Walmart failed to enter the Indian market all these years?


Entrepreneur | Posted on

Even with all the latest policies in Foreign Direct Investment (FDI), entering the Indian market – at least for large and multi-national companies – is difficult. And this has always been the biggest problem for Walmart, which is why, even with consistent efforts, it has failed to open even one of its iconic retail stores in the country.

There are several loopholes, limitations, and caveats in the FDI in India. And aside from that, although the Modi government has loosened the terms for international brands, our country is plagued with red tapes. Do you really think that even with a green signal, Walmart would be able to launch its stores so easily without getting obstructed by babus and opportunist politicians?

In the sham of saving domestic brands, retailers, and wholesalers, the opposition party will always oppose the entry of Walmart in the Indian market. The orthodox and conservative writers will go all guns blazing with their editorial pieces, counting the ills of Walmart’s expansion in the country. This has what happened multiple times before, whenever this retail giant has attempted to enter in India. And this is exactly what will happen in the coming years, until the masses are well informed about the REAL (and not hyped) impact of Walmart’s entry, and how it can be helpful to Indian retail market.

With now Walmart buying Flipkart, we can see the retail brand make another effort to leave a mark in the country with the digital-first path. Over the course, it can slowly expand its operation. One thing is for sure, with Indian retail market expected to reach the $1 trillion mark by 2020, the company would definitely do a lot to get a pie of that cake.

Also, on a personal note, I think the entry of Walmart in India would be highly beneficial for end-consumers, farmers, and manufacturers. The competition will peak, which will further boost the retail market. The only problem will be faced by the middlemen; maybe it’s time now that they find a real job instead of passing on products and money from one party to another and eating a lot of money in the middle.