India’s Role In World Economy And Walmart

Running Head: INDIA’S ROLE IN WORLD ECONOMY AND WALMART
India’s Role In World Economy And Walmart
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1INDIA’S ROLE IN WORLD ECONOMY AND WALMART
This essay will deal with the topic of Walmart and how it has bought Flipkart, the
largest online retail market in India. Retail markets are forming an important part of the world
of marketing strategies in the modern times. These markets help to make sure that the
products and services from the different countries are exchanged between different nations of
the world to ensure that people of different countries gets to know about the products from
different parts of the world. In the recent times, with the emergence of e-commerce sites, it is
becoming much easier for foreign markets to enter the Indian territories and sell their goods
and products in the Indian marketplace. Through the Indian retail marketing sites, the
customers can easily purchase their products from one parts of the world for both themselves
as well as their family members. According to Browne (2016), this is now turning to be a
competition between the Indian and foreign markets. Recently, it has been reported that
American e-commerce company Walmart has brought acquisitions into Indian e-commerce
company Flipkart. As a result, Flipkart, will now be entirely controlled by Walmart which
will play an important role in the economy of India and it is expected to be highly profitable
for the Indian markets. India is also expected to become a global retail market in the world in
the near future.
The thesis statement of this essay is to ensure that why India is one of the leading global
market retailers in the world. It will also explain why Walmart is so much interested in
India and why it has taken over India’s leading e-commerce company Flipkart. Finally,
the thesis will also explain why Walmart also needs to abide by various social norms in the
Indian markets to make sure that they can become a market leader in the Indian market.
Retail markets are used to refer to those markets of the world whose retail products
are well known for buying among the target audience. As stated by Galvin (2015), these
markets are the ones where people buy their various needs and wants from. It has been found
in a survey that India, along with China are one of the most attractive countries for entering

2INDIA’S ROLE IN WORLD ECONOMY AND WALMART
the retail market in the world. India itself has become one of the most attractive retail
markets of the world since 2016, and is fast emerging as the next e-commerce boom market
of the world. It is expected to increase by 60% by 2020 due to factors like changes in lifestyle
and increase in income. India has allowed foreign investors to enter its markets and is still
improving on this field. As stated by Sims (2017), in spite of having a complex market
system, the country is making improvements in its infrastructure with the help of foreign
investments in the market. Recently, the Indian Government has allowed 100 per cent foreign
investments in its market which has allowed foreign companies like Walmart to compete with
local brands Café Coffee Day (CCD). Although India still needs to do a lot of work to make
it an e-commerce market, it is still making improvements in its market infrastructure for e.g.
Flipkart, being an Indian online retail company, sales their products both in the country and
abroad.
India has been playing a considerably important role in the global economy of the
world. As stated by Galvin (2015), there has been a lot of change in the world market since
the World War II which has resulted a great deal of change in the companies and their
marketing strategies by making new rules and regulations in the country. Although India’s
market economy is still comparatively weak, it has however, improved a great deal in the last
few years. India currently stands in the fourth place in the current world economy in terms of
Gross National Income at purchasing power exchange rates (Browne, 2016). It was estimated
that till 2005, India had a GDP in terms of PPP which was 5.9% thereby making it the fourth
highest country in the world in terms of global economic contribution (Bloomberg, 2019). It
has been found that in the last ten years, India’s growth rate on an average had been more
than 8% averaging it in 6.4%. The financial integration of the country has also increased this
time from 15.33% to 19.88%. Moreover, at this time, the industry sector has also risen to a
share of 26.1% around 2005-2006. Although the GDP of the country is high enough, it has

3INDIA’S ROLE IN WORLD ECONOMY AND WALMART
resulted in low inflation in the country. It is expected that the government will be taking
various measures to make sure that the inflation of the company remains low while India
continues to contribute more and more to the global economy of the world. If the country can
maintain the low inflation rate with high economy and more foreign investment, then in no
time, the country will become in first or second place in terms of being one of the largest
retail markets of the world beating China and Japan in the process. This will add to the
competitive advantage for India as it will give them greatest profit in the market place and
will place it in a leading position.
According to Browne (2017), Walmart decided to make its move in the Indian market
by moving into a direct competition with Indian based e -commerce company Flipkart. It had
acquired a 77% stake of shares in Flipkart after making its debut in India some eleven years
ago. Since then the company has been working in India cooperating with various other e-
commerce sites. As stated by Grant (2016), in the recent times, Walmart looks to continue
with Amazon which is another e-commerce giant in the Indian market, which is both good as
well as bad. It is said that if they do compete with each other, then it will be very good for the
customers as Walmart will make sure that they turn out to be the leaders of the marketplace
by attracting more customers with their product and services. This is bound to attract more
customers as they will be more interested in Walmart’s products or services although they
would be expensive.
On the other hand, if Walmart turns out to be a company that manufactures goods and
products for the Indian market, that might turn out to be very difficult for them as they need
to make sure that the Indian public are interested in their products and services. However, if
the Indian customers turn out not to be interested in Walmart’s products and services, then it
can turn out to be difficult for them as other e-commerce companies might beat them in their
market competition (Chun, 2016). Also, the newly made rules and regulations might restrict