Wal-Mart Changed Canadian Retail. Can It Save India?
Wal-Mart Changed Canadian Retail. Can It Save India?
India is in a bit of trouble these days. Despite its reputation as one of the “economic tigers” of the developing world, growth has slowed, inflation is running over 10 per cent and infrastructure problems remain staggering. So where has Prime Minister Manmohan Singh turned for help? Wal-Mart.
Last week the Indian leader announced a package of sweeping economic reforms; chief among these are changes to his country’s restrictive retail laws that will allow Wal-Mart and other foreign firms to set up shop for the first time. While the plan still faces political opposition, Singh is hoping the store’s famously obsessive commitment to low prices and efficient logistics will play a key role in curbing inflation, stoking domestic growth and modernizing India’s entire retail industry.
“We are willing and able to invest in back-end infrastructure that will help reduce wastage of farm produce, improve the livelihood of farmers, lower prices of products and ease supply-side inflation,” Raj Jain, president of Wal-Mart India, told Bloomberg News after the new policy was announced.
Wal-Mart as national saviour isn’t an image most Canadians are likely familiar with.
Since it first appeared in Canada in 1994, Wal-Mart has more commonly been portrayed as a corporate killer of mom-and-pop stores, the scourge of unions and a destroyer of urban landscapes. Over the years there have been movies, books, online petitions and countless public, political and legal protests against the 337-store retail behemoth. Lately, however, it seems the tide has turned for Wal-Mart in Canada, just as it is turning in India.