Wal-Mart and the Indian Retail Sector

Wal-Mart, one of the most successful retailers in the world, was known for its low prices, which it achieved through its sourcing and supply chain efficiencies. Bharti had no presence in retail, but expected to grow in the Indian retail sector by partnering with a major global company.
The retail sector in India, which had hitherto been dominated by small local players and mom-and-pop stores, witnessed a boom in the early 2000s, with several large companies entering into organized retail.

Analysts said that the growing disposable incomes of the large Indian middle class and their increased exposure to western shopping habits, in addition to the availability of a greater variety of products, were responsible for the Indian retail boom.

This was in addition to the Future Group, the RPG Group (RPG), and others, who already had a strong presence in Indian retail.

However, the entry of Wal-Mart was expected to significantly change the Indian retail sector. Because of the expected effect of Wal-Mart on the sector, the company's proposed entry met with vehement opposition from the Communist Parties and retail groups in India. However, as of early 2007, Wal-Mart and Bharti continued to maintain that Wal-Mart was definitely coming to India. But analysts wondered whether political pressures would prove to be an insurmountable impediment to the company's plans.