May 26, 2024
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Walmart Sets Sights on India as a Key Export Hub With $10 Billion Annual Target by 2027

Walmart, a leading global retailer, is strategically positioning India as a crucial export center to leverage its economic potential. With $30 billion in cumulative exports over the past two decades and a target of $10 billion annually by 2027, Walmart aims to expedite this growth. Jason Fremstad, Walmart’s Senior Vice-President of Supplier Development & Sourcing, highlights the importance of Production-Linked Incentive (PLI) schemes and government infrastructure investments in accelerating export growth.

Fremstad emphasizes that PLI schemes encourage domestic production and enhance the competitiveness of Indian products globally. Walmart, which holds a 77% stake in Flipkart, recognizes the significance of robust infrastructure for its operations in India, particularly for last-mile connectivity crucial for e-commerce.

Improved infrastructure benefits not only Walmart and Flipkart but also their vast network of micro, small, and medium enterprises (MSMEs) suppliers, enhancing supply chain efficiency. Recent infrastructure developments have led to a notable reduction in logistics costs, according to Flipkart CEO Kalyan Krishnamurthy.

The industry anticipates further government investment in infrastructure, given the 11.1% rise in capital expenditure announced in the interim budget. Experts like Naina Lal Kidwai hope that increased tax revenue will be directed towards infrastructure spending and capital expenditure.

Overall, the industry consensus is that focusing on infrastructure development and supportive policies for MSMEs will be crucial for India to maintain its momentum and strengthen its position in global supply chains.

Picture Courtesy: Google/images are subject to copyright

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