Walmart commits to increase exports from India to $10 billion by 2027

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December 11, 2020 6:15 AM

In an attempt to support Indian small and medium businesses and create jobs, Walmart on Thursday announced its commitment to export $10 billion worth of India-made goods each year by 2027.

walmart, seiyu supermarket, walmart majority stakes in japan, KKR & Co, walmart disinvestmentThe latest initiative will add to the US-based retailer’s existing programmes—Walmart Vriddhi supplier development and Flipkart Samarth that aim to help Indian MSMEs. (Photo source: Reuters)

In an attempt to support Indian small and medium businesses and create jobs, Walmart on Thursday announced its commitment to export $10 billion worth of India-made goods each year by 2027.

The latest initiative will add to the US-based retailer’s existing programmes—Walmart Vriddhi supplier development and Flipkart Samarth that aim to help Indian MSMEs. While the Samarth scheme facilitates underserved communities like artisans, rural entrepreneurs and weavers to sell on Flipkart’s marketplace, the Vriddhi supplier programme equips MSMEs to supply to Walmart, Flipkart and other companies in India as well as around the world.

Walmart that has already been present in India via its wholesale cash & carry stores before its acquisition of a controlling stake in Flipkart in 2018 counts the country as one of its top sourcing markets with annual exports worth about $3 billion. India-made apparel, homeware, jewellery, hardlines and other popular products currently reach customers in 14 markets, including the US, Canada, Mexico, Central America, and the United Kingdom, via Walmart’s Global Sourcing office in Bangalore, which opened in 2002.

“By significantly accelerating our annual India exports in the coming years, we are supporting the Make-in-India initiative and helping more local businesses reach international customers, while creating jobs and prosperity at home in India. It is also a way for Walmart to bring more high-quality, India-made goods to millions of customers all across the world,” said Doug McMillon, president and chief executive officer at Walmart.

The expansion in sourcing will include helping develop hundreds of new suppliers in categories such as food, pharmaceuticals, consumables, health & wellness and general merchandise, along with apparel, homeware and other key Indian export categories, the company said in a statement.

Faced with repeated protests from local traders due to their alleged discriminatory business practices of resorting to predatory pricing, giving preferential treatment to sellers, e-commerce companies Walmart-backed Flipkart and Amazon have been wooing small businesses in India.

Earlier this year, Amazon said it will export $10 billion worth of Make-in-India goods by 2025. The company committed investment of an additional $1 billion in the country, bulk of which will be used to digitise small and medium businesses. The firm’s global selling programme has helped local businesses reach cumulative exports worth over $2 billion, Amazon had said.

Separately, asked about India’s changing foreign investment rules in multi-brand retail at a media event in New Delhi on Thursday, Walmart’s McMillon said: “Rules change everywhere. Even before Flipkart and PhonePe came along, we experienced change in government regulation. We expect that. What we think is best things evolve over time. Great leaders will make good policy decisions and things in general will open up and we can participate in that.”

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