Wal-Mart is the first multinational company to jump on the news that India is opening up its doors to foreign retail markets. Wal-Mart plans to be operating in India within the next 12 -18 months. Las week there was an announcement that foreign firms will be allowed a “ majority stake in multi-brand store for the first time.” Prior companies such as Wal-Mart were only allowed to operate as wholesale outlets. Opponents are worried that this move will hurt India’s job market and mom/pop shops. Advocates believe this will open India’s doors and attract new business as well as decrease current food prices.
Last week the Sensex increased 404 points in one day on the news that India was opening its doors to foreign companies. This will increase investments into India and allow India to flourish. India is currently going through its industrial revelation as we have seen with developed countries such as the US and UK. The average age in India is 25 years old and has a population of 1.2 billion people. As more individuals enter the workforce and India becomes more urbanized individuals will be earning more and consuming products such as housing, cars televisions etc. for the first time. By allowing foreign retail firms into India will speed up the process in its development. Now is the time to start investing in India.
Written by: Jeff K.
Kinetz, E. (2012, Sept 21). Wal-Mart to open retail outlets in India within 18 months after gov’t allows in foreign firms. Canadian Business. Retrieved September 24, 2012, from http://www.canadianbusiness.com/article/99509–wal-mart-to-open-retail-outlets-in-india-within-18-months-after-gov-t-allows-in-foreign-firms