For what it looks like Walmart is expanding in India and it will set up 50 stores across India. The retailer signed a MoU with the Telangana government yesterday and will setup 10 stores in Telangana. The deal is said to "boost" India's economy forward and is predicted to provide employment to nearly 2000 citizens in India. Walmart wants to first expand it wings in Hyderabad by setting up 4 stores there. Walmart is known for an availability of a wide product range for a really cheap price. Therefore, it should be really good for the citizens of India right?
Walmart has often mistreated their workers and is well known in the worker justice movement for their poor treatment of workers and low pay scale. In fact, they make them work over time, for very little to no pay at all. It may be likely that more workers will be exploited. According to a famous article by the Economic Times," the workers at the supply side of Walmart face "intensive labour exploitation and abuse" including non-payment of wages, sexual harassment and unsafe work environments." One could say that the ethics and the morality of Walmart are questionable as they follow these malpractices not only in India but all around the world. A food for thought - Do we really need a Walmart?
Whats in for Walmart?
- Cheap Labour
- A chance to occupy a major portion of the market share in the retail industry by selling to the World's Second Largest Population-India.
Can Walmart Benefit Us?
Walmart can benefit us(India) by paying corporate taxes, investing in the transportation system(to benefit themselves by easing their supply chain), bring in FDIs, etc. However Walmart might repatriate their profits to their home country thereby decreasing the country's GNI/
Since putting a blind eye to the positives of Walmart expanding in India would make this post as useful as a needle during a sword fight, these are the following advantages of Walmart expanding:
- Improves balance of payments
- Increases Employment
- Generates Revenue through Taxes
- Spoils the Customer for choice
- Promotes Healthy Competition
However, these advantages can only be reaped if the government can take a stand and ensure that the workers of Walmart aren't exploited by imposing laws and hefty fines if Walmart breaches these laws. To answer the question asked in the title, does India lose? Yes, to an extent, the environment, the workers and the GNI of the country lose but it is the victory of the customer. It is likely that firms like Big Bazaar will indulge in prize wars with Walmart and therefore the only people who will win are the customers.
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