Endorsing India's rise as a global hub of manufacturing, US-based retail major Walmart on Thursday said it will triple its exports of Indian goods every year to $10 billion by 2027. The new export commitment is expected to provide a significant boost to micro, small and medium-sized enterprises (MSMEs) in India, alongside ongoing efforts such as the Flipkart Samarth and Walmart Vriddhi supplier development programs, Walmart said.
The company aims to empower 50,000 MSMEs to 'Make in India' for domestic and global supply chains over five years.
As per the company, the expansion in sourcing will include helping develop hundreds of new suppliers in categories such as food, pharmaceuticals, consumables, health & wellness and general merchandise, along with apparel, homeware and other key Indian export categories.
"We see huge potential for Indian suppliers to grow their businesses by leveraging the unique scale and global distribution opportunity Walmart provides," Doug McMillon, president and Chief Executive Officer of Walmart Inc. said.
"By significantly accelerating our annual India exports in the coming years, we are supporting the Make in India initiative and helping more local businesses reach international customers, while creating jobs and prosperity at home in India. It is also a way for Walmart to bring more high-quality, India-made goods to millions of customers all across the world," McMillon added.
To accelerate its Indian exports, Walmart will strengthen development of the supply chain ecosystem in India, both by boosting existing exporters and by expanding the nation's pool of export-ready businesses, the company said. At the grassroots level, Walmart's supplier development program Vriddhi, launched a year ago, is bringing export skills and knowledge to MSMEs to prepare them to succeed as suppliers to Walmart, Flipkart and other companies in India and around the world, it said.
India is already one of Walmart's top sourcing markets, with annual exports worth about $3 billion. India-made apparel, homeware, jewellery, hardlines and other popular products currently reach customers in 14 markets, including the US, Canada, Mexico, Central America and the United Kingdom, via Walmart's Global Sourcing Office in Bangalore, which opened in 2002.
"As the sourcing hub ramps up over the next few years, the local team will be empowered to make an even greater impact for even more local businesses in a wider range of sectors, the company said.
Walmart said it has sourced goods from India for more than 20 years, supporting local suppliers to help upgrade their operations and meet international standards, develop new product lines and build new capabilities in packaging, marketing, supply chain management and more. Walmart brings global market intelligence and demand forecasts that help suppliers with strategic planning. This support has contributed to the global success of hundreds of companies, including Welspun, LT Foods and Aniket Metals, plus fast-growing export businesses, like Global Green Company and many more.