As offshore investors grow more confident in the Indian market, one of the world’s leading grocery retailers is assessing the potential to increase its spend in the South Asian nation.
Walmart India – a wholly-owned subsidiary of US-based Walmart Stores – is reportedly reviewing a new set of guidelines, which allow for 100 per cent foreign direct investment (FDI) in India’s food retail sector.
According to Inside Retail Asia, Walmart India president and chief executive Krish Iyer said his company had been “evaluating” the new guidelines and would look to act on the changes “at an appropriate time.”
Walmart India currently operates exclusively in the cash-and-carry wholesale space. It has over 20 stores under the Best Price Modern retail banner across the country.
Walmart is not the only retailer to signal its interest under the new FDI laws. In February, ecommerce giant Amazon launched a bid to become the first wholly-owned foreign retailer to sell locally produced food items online in India.
The growing level of faith international investors see in India was reflected in the 2017 AT Kearney FDI Confidence Index. The country moved up to eighth place in the index (ninth in 2016), with 70 per cent of respondents planning to maintain or increase their FDI in India over the coming years.
“India's reforms to enable a 'transparent' and an 'easy' business environment, have made it an attractive destination for foreign companies,” the AT Kearney report said.