India's controversy is about Walmart's growth into the Indian market. India's reluctance to allow Walmart into their economy is that other Indian grocery related businesses will be unable to compete due to the low prices and and better food quality that Walmart offers. In an article from ABC News by Dan Mitchell stated: "Take India, where Wal-Mart is helping small farmers by supplying them with the means to ward off insects, increase productivity, and otherwise succeed in getting their crops sold for a good price" (Wal-Mart Inches Into India). Walmart is helping Indian farmers by improving their crops and enabling farmers to be paid a higher price for their produce. They're doing this because they currently have a business partnership with one of the larger produce wholesalers in India.
The main issue that India has with the expansion of Walmart into their economy, is that Walmart will destroy the way India currently sells groceries to its consumers. India has many wholesalers who buy crops from farmers and sells them to the grocer. If Walmart comes into the picture, and works as it does in the United States, there is a good chance that wholesalers will be cut out of the economy. In addition, the small grocers would disappear form India's landscape, and be replaced by Walmart's large stores. India has long been concerned about large foriegn companies taking over specific markets in their economy.
In my opinion having Walmart expand into India's culture would be more beneficial. Walmart supply many jobs, and it would improve the quality of food distribution. It would lower the cost of the food to the consumer because, it would buy directly from the farmers, manage transportation of the products directly to the stores, and sell straight to the consumer. The negative is the possible loss of the small independent grocer and Wholesaler to the Indian economy. Although, there are many barriers to Walmart's growth in India, the benefit to the Indian people should out-way the negatives. The changes to the Indian society would be painful due to the change in the current system, but in the long run, the improvements will be worth it.
For more information visit: http://abcnews.go.com/Business/TheBigMoney/wal-mart-inches-india/story?id=10363987&page=2
Do you think that it's possible that should Walmart expand into India, it could be taking jobs away from small family farmers who sell their crops privately?
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ReplyDeleteAs someone who was born, lived, and visited India in my lifetime, the idea of having WalMarts there scares me. The amount of people there that barely make a living selling one or two products in one small store or stall is enormous, and many of these people would suffer if WalMart moved in. WalMart would be able to sell items like the ones people handmake for a cheaper price, and the people with limited talents would suffer greatly. Also, WalMart says that they will be creating more jobs in the area, which is true, but wont necessarily help the people that really NEED these jobs, like the poor, who are unable to get access even a minimal education.
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