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Walmart- Good or Bad...and should we allow it to enter in India?

11/29/11 | by saket [mail] | Categories: In real life


On an eventful day wherein Union Minister of Agriculture was slapped, the Union Cabinet of India took a decision to allow 100% FDI (
Foreign Direct Investment) in single brand retail and 51% FDI in Multi Brand Retail. With billions expected to be poured in ,why is everyone opposing it? Lets take Walmart as a representative and see the pros and cons of Walmart:


1.Walmart, a company which sits at the top in Fortune 500 companies.
A gloal leader in retail!! Infact a superpower which has a revenue of about 420 Billion US $. Wow!!

2.Walmart is world's largest employer with around 2 Million employees with 8500 stores in more than 15 countries. So it is definitely one of the most successful organisations in the whole world.

3.Everyday Low Pricing

4. Lowest Prices for all items.

5. Huge employment opportunity.

1. Oppositions from Local And Small Busimesses:
Well, this is a prime concern because the local grocers, vendors and distributors fear that with the financial power Walmart has, it will keep the pricing so low that their customers will go to  walmart to get a better deal. And it is true as it has affected  a lot many businesses in the whole world. BUT here is the brighter side: These local vendors and dealers (specific to agriculture) first of all themselves exploit the farmers. Tonnes of onions and tomatoes are wastes near Nashik because the farmers are made to sell it at as low as 1 Rs/ Kg in the market place. Mind you the transportation cost and input costs are not even recovered, and at the same time these vendors sell it at 30-40 Rs / Kg. As a result the farmer decides to dump the onions and tomaotes instead of selling them at such a low price.So with walmart in, the transportation costs  are gone, add to that with government restrictions, the farmers will get a better deal.

2.Predatory prices and supplier issues:
Well , it is said that walmart will do arm twisting and demand the ssupplies  at a very low prices . Even a giant like Kraft had to bend before  Walmart.Well then it already happens in India. Reckitt Benckiser already had a feud with Future Group.But then India is a huge country with various forces (Official and non official) governing the country, so Walmart won't be able to do that in India.

3.Wages , Labour Issues and employee conditions:

It is said that Walmart exploits its employees. But again Indian Labour Organisations and political parties won't let that happen.

4.Pollution due to walmart:

Walmart has been accused of harming the nature and polluting the rivers and atmosphere.Well this is a matter of concern and if it does not follow the environmental laws, it should be given a severe punishment.


Nashikmarkets.com doesn't see any harm in allowing walmart and similar retails as FDI's. Development of India is must and we will reap benefits in form of FDIs !!

Pure Gold!!!