Walmart heads to India just weeks after the government there said it would allow foreign ownership... [+]
Walmart will be the first major U.S. retailer to set up shop in India after the government there allowed foreign investments in the space less than ten days ago.
Raj Jain, the managing director of the Bharti Walmart joint venture, confirmed to the Associated Press in Mumbai by email on Saturday that the American retail juggernaut plans to open an undisclosed number of stores over the next 18 months.
India's government committed to a controversial decision last week when it said it would now allow foreign firms to take a majority stake in multi-brand stores for the first time. The surprise decision was long awaited by the big box stores like Walmart, but came with a political price.
Indian Prime Minister Manmohan Singh addressed the nation Friday in a public defense of his recent trade-policy decisions, which included allowing some of the world’s largest retailers full access to a growing market. Singh tried to pass the measure last year, but backed down in the face of resistance from political allies, damaging his credibility with global investors.
India is seen as one of the most coveted emerging markets for retail within the next 20 years.
See: Global Retailers Welcome FDI In India -- The Economic Times
