India’s economy is making a mark in the world, and one of the biggest corporations to notice this is Walmart. The retail giant is shifting its production from China to India to reduce costs and increase efficiency in order to produce cheaper imports for its customers.
Walmart has been around since the 1950s, but over the last two decades, its focus has now shifted to low-cost production and manufacturing in countries such as China. However, the US-China trade war, in addition to rising labour costs, has made it increasingly expensive for the retail giant to produce goods in the East-Asian country.
That is why Walmart is now looking to India as an alternative, as it can produce goods in a more cost-effective manner and ensure timely delivery of products. Walmart sources more than 70 percent of its products from India, with over 800 Indian-based vendors supplying goods make sure the supply chain is reliable.
Various reports indicate that Walmart is working with Indian tech startups to utilize state-of-the-art technology to enhance forecasting accuracy and smoothen their supply chain. In addition, Walmart is leveraging the fact that Indian laws allow for 100 percent foreign direct investment in multi-brand retail, which has in turn made it easier for them to increase their reach.
Walmart’s move to India may cause a revolution in global trade as other firms may be forced to adopt similar strategies in order to cut down costs for efficient production of quality products. In this way, India may become one of the most sought-after countries for sourcing imports. This will in turn help boost India’s economy as more companies look towards India and the country’s vast pool of resources to source their domestic and international production needs.
It is clear that Walmart holds India in a high regard and expects a great return from their investments in the country. With the help of technology, Indian startups, and the Indian government, it looks like Walmart’s shift to India will be a success.