homebusiness Newscompanies NewsWalmart sets sights on India as a key export hub with $10 billion annual target by 2027
Walmart sets sights on India as a key export hub with $10 billion annual target by 2027
Over the last 20 years, American retail giant Walmart has exported goods worth $30 billion from India. However, the company wants this export number to hit $10 billion per year. CNBC-TV18's Ashmit Kumar reports on Walmart's key demands from the Indian government to achieve that sooner.
Walmart, a global retail giant, is strategically positioning India as a key export hub, aiming to capitalize on the nation's economic potential. With a remarkable achievement of $30 billion in cumulative exports over the last two decades, Walmart is eyeing an annual export target of $10 billion by 2027.
However, the company's management is optimistic about accelerating this timeline. Jason Fremstad, Senior Vice-President of Supplier Development & Sourcing at Walmart, identifies two crucial factors for expediting this growth – the Production-Linked Incentive (PLI) schemes and continued government investments in infrastructure.
Fremstad emphasizes the critical role of PLI schemes in driving an export-led push. These initiatives not only incentivize domestic production but also play a pivotal role in enhancing the competitiveness of Indian products in the global market.
Walmart identifies infrastructure development as a linchpin for its India operations, particularly through its majority-owned online retailer, Flipkart. Holding a substantial 77% stake in Flipkart, Walmart recognizes the importance of robust last-mile connectivity, which is contingent on improved infrastructure.
The ripple effect extends to the vast network of micro, small, and medium enterprises (MSMEs) that serve as crucial vendor suppliers to Walmart. The retailer underscores the significance of better infrastructure for these enterprises, acknowledging that it can catalyze operational efficiency and enhance the overall supply chain.
India's recent focus on infrastructure development is yielding tangible results, with notable improvements in last-mile connectivity. Kalyan Krishnamurthy, CEO of Flipkart, reports a substantial 30-35% reduction in logistics costs, attributing this positive trend to enhanced connectivity and infrastructure.
The achievements thus far fuel optimism that the 11.1% rise in government capital expenditure (capex) announced in the interim budget could witness further augmentation in the upcoming full budget.
Industry experts, including Naina Lal Kidwai, Former President of FICCI, express hope that any additional tax buoyancy in the next fiscal year will be channelled towards infrastructure spending and capital expenditure.
The consensus within the industry is that a robust push on infrastructure development, coupled with supportive policies for MSMEs, will be pivotal areas of focus in the coming years. This strategic alignment is perceived as essential for India to sustain its momentum and solidify its position in the global supply chains.
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