The American retail giant's mammoth plans to triple exports from India is a shot in the arm for Modi's 'Make in India, Make for the World' philosophy which has found a global connect.
The decision by Walmart Inc, an American multinational retail corporation, to triple its exports of Indian made products to the tune of a staggering $10 billion annually by 2027, will ensure in widening the global reach of goods from India. Walmart has always appreciated India as a top market to source for products like jewellery and homeware and, according to Reuters, the annual exports currently stand at approximately $3 billion. Making a statement of intent to firm up their new level of commitment Walmart's chief executive officer Doug McMillion said, "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.”
Support new supply chains
Walmart's plans to foster many new suppliers in key Indian export categories such as food, pharmaceuticals, consumables, health and wellness, and general merchandise, along with apparel and homeware.
The operative word in McMillion's announcement was 'Make In India'. Indian prime minister Narendra Modi's Independence Day address to the nation now comes as top of mind recall wherein he displayed a premeditated clarity on his concept for a self-reliant India.
“Today, the world is interconnected and interdependent,” he said from the ramparts of the Red Fort. “So, it is the need of the hour that a vast country like India should increase its contribution to the world economy,” he told the nation from the ramparts of the historic 17th century Red Fort. To do that, India will have to be self-reliant.”
The underlying driving force for Make in India was to Make for the World. India's Ambassador to the US, Taranjit Singh Sandhu echoed this theory in his tweet, endorsing Walmart's decision saying, “Make in India: Make for the World. Bog boost to MSME sector in India and promotes India as a global manufacturing hub.” India and the world are now beginning to grasp the true import of Atmanirbhar Bharat (Self-Reliant India) which dovetails seamlessly into the prime minister's flagship Make in India initiative.
Atmanirbhar Bharat is propped upon the five pillars economy; infrastructure, system; demography and demand. The purpose behind operating upon these foundations was to ensure that the country eased itself into the global supply chains by resetting the basic tenets of the economy and followed a reorganized model of growth. This explains why Modi's announcement has resonated with businesses and industries across the world and they are queueing up to become a part of the great Indian post pandemic economic success story.
Generating economic traction
The economic traction that India is generating is just the tip of the iceberg. A post pandemic world will ensure that the script for India's economic success story is prepped for the perfect climax which will resonate with industry and investors globally. There are ample signs of that already. India has undergone radical alterations during the pandemic to reset and reenergize its business fundamentals and innovation has become the key approach in thought and execution. In its essence, Modi's speech wasn't just rhetoric. The fact that manufacturers and supply chain partners are moving to India to take advantage of the government's PLI scheme are cases in point.
India is already one of its top sourcing markets with annual exports worth around $3 billion. Products like apparel, homeware, jewelry and hardlines are being pushed out into 14 markets including Canada, Mexico, Central America and the United Kingdom.
Walmart's odyssey with India has been eventful and memorable but perhaps the American giants will want to put that expedition behind them. In July this year e-commerce entity Flipkart Group made a 100 percent acquisition of Walmart India Pvt. Ltd. In 2018, Warmart Inc. had invested $16 billion for a majority stake in Flipkart. The reverse acquisition of the business-to business division of Walmart was to ensure Flipkart inflate its imprint in the food and grocery segment and thereby strengthen its supply chains.