The world’s largest retailer is seeking entry into India’s vast retail market through foreign direct investment (FDI). Wal-Mart presently is tied up with Bharti Airtel to sell its goods in the Indian market.
It has a 50:50 finance deal with the Indian giant Bharti Airtel, but the company has begin talks with the Indian government to enter the Indian market through FDI.
India has a strict code of law in FDI sector. The law allows hundred percent foreign direct investments in wholesale trade only, but only 51 percent in single brand retail.
Wal-Mart being a multi brand retail firm had to contend with selling their stuff through collaboration in the Indian market.
However, Mike duke, CEO, Wal-Mart stores Inc for global market is upbeat about India changing their stance over foreign direct investment sooner than later.
At present, the firm had to contend with opening wholesale stores in the Indian market. The opening of FDI in India would certainly boost their finances.
India has a large domestic retail market. Sources claim that India has over $400 billion retail market within its shores, which is big enough to attract foreign players.
There are many big retail firms from foreign shores waiting for the FDI norms to change in their favor.
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