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India Is Afraid of America's Big Box Store Called Wal-Mart

Updated on November 29, 2011

It is a typical fear of third world nations as they open up the retail market to foreign big box stores like Wal-Mart, Tesco, Ikea, Apple etc. India's government has been indecisive about this issue until recently when the government would allow it, as long as a local partner is involved It allows the foreign retailers to now own 100% of their stores instead of the 51%. They are restricted to 53 cities containing one million people and must source a third of their suppliers from Indian businesses.

It has been a long debate- over ten years. India hopes to generate 10 million new jobs. Yet, Indians are angry at their government's decision. The reason is India's heritage and its past dealings with foreigners. The poor see their blight as a product of greedy capitalism and foreigners have made profits in the past, which Indian's equate with loot and greed, not benefits that help all citizens. Some ant-foreign store groups have threatened to burn down the first Wal-Mart store. These anti a groups have been tweeting and facebooking false information about how Wal -Mart ruined the US economy.

India was a long time colony and old attitudes and prejudices still exist there regarding foreign investment. Many think, they will come, take the money and leave the Indian's holding the bag. Its government is steering leftist for its brand of democracy, State controlled. It is more socialist in the retail world, yet, India in the past 15 years, has grown economically more than it has ever due to a democracy that was more capitalistic.

China embraces the big-box stores like Wal-Mart, seen as opportunity. Maybe its the culture and history.India has not been a colony for a long time now, it should see foreign investment as opportunity. Those in the IT sector have learned by living in the US and doing business there the retail model and returned to India to do the same. They have prospered.

Old ways, die hard.


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    • pramodgokhale profile image


      6 years ago from Pune( India)

      The part of India's trading community is afraid of their future,but new middle class tech savvy,welcomes the large stores to get service at one place.If big stores assures quality of their product and service,nice we welcome.

      Nobel winner American Economist Dr.Joseph Stieglitz warned about these super store and their chains then to whom we follow?

      In America there are customer care groups and organizations who fought for customer's cause. In India

      groups are weak and unorganised ,so in case of raw deal get by customer the how to get justice?

      Thank you for open forum and discussion

    • jainismus profile image

      Mahaveer Sanglikar 

      6 years ago from Pune, India

      I mean traders, including small shopkeepers who are always with the present day opposition party.

    • mjfarns profile image


      6 years ago from Bloomington, Illinois USA

      Jainismus: is that a play on words? Did you mean "traders" or "traitors"? LOL

    • jainismus profile image

      Mahaveer Sanglikar 

      6 years ago from Pune, India

      Not all India, Not the Government, but the opposition party which is supported by traders.


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