Walmart’s $10 Billion Sourcing Goal: A Boost for India’s Exports

Walmart aims to boost annual sourcing from India to $10 billion by 2027, emphasizing the country’s growing role in its global supply chain. Since 2002, Walmart has sourced over $30 billion worth of goods from India, including apparel, toys, and processed foods. The company is also supporting micro, small, and medium enterprises (MSMEs) through its Walmart Vriddhi initiative, benefiting 70,000 businesses so far. Additionally, Walmart’s investments in Flipkart and PhonePe highlight its commitment to India’s economic growth and export potential.

Walmart CEO Doug McMillon recently reaffirmed the company’s ambitious goal to ramp up annual sourcing from India to $10 billion by 2027. Speaking at an event in New Delhi during his second visit to the country in less than 18 months, McMillon highlighted India’s growing significance in Walmart’s global supply chain strategy.

“India’s growth story continues to evolve, becoming broader and more dynamic by the day,” McMillon remarked, emphasizing the retailer’s commitment to partnering with local suppliers to achieve this target.

Expanding Walmart’s Global Sourcing Base

Walmart’s journey of sourcing from India began in 2002, and since then, the company has purchased over $30 billion worth of goods from the country. In December 2020, Walmart announced its $10 billion annual sourcing target for 2027, aiming to bolster exports in categories such as apparel, processed foods, toys, and homeware.

At present, Walmart procures a wide variety of products from India, ranging from textiles and home goods to pharmaceuticals and food items. The company operates a sourcing office in Bengaluru and collaborates with manufacturers across several states to meet its growing needs.

Despite operating 28 Best Price wholesale stores in India, Walmart does not run branded retail outlets in the country due to foreign direct investment (FDI) restrictions.

India: A Strategic Alternative in Global Supply Chains

McMillon’s visit comes at a time when global corporations are reassessing their supply chain dependencies in light of geopolitical tensions and rising costs. As companies look to diversify beyond China, India is emerging as a promising alternative, particularly in industries such as electronics, consumer goods, and textiles.

Walmart’s investments in India extend beyond sourcing. The retailer has a majority stake in e-commerce platform Flipkart and digital payments firm PhonePe, both of which have seen impressive growth. Flipkart continues to dominate India’s online retail market, while PhonePe has expanded into financial services, offering mutual funds and insurance. Both companies are gearing up for public listings, signaling Walmart’s confidence in their long-term potential.

“What our teams have accomplished to scale these businesses over the years is truly inspiring,” McMillon said, commending the innovation and growth of Flipkart and PhonePe.

Supporting India’s Micro and Small Enterprises

Walmart is also investing in the development of India’s micro, small, and medium enterprises (MSMEs) through its Walmart Vriddhi initiative. Launched in 2019, the program aims to empower MSMEs by providing training and resources to help them scale their businesses.

Earlier this month, Walmart announced that more than 70,000 MSMEs have benefited from the Vriddhi program, with a goal of reaching 100,000 businesses in the next three years. During his visit, McMillon met with several suppliers who have leveraged Vriddhi’s resources to grow their operations and expand their reach.

Expressing his gratitude for Walmart’s partnership with India, McMillon noted, “We value the enduring relationship we share with this country and remain committed to supporting its economic growth.”

A Promising Path Forward

As Walmart works toward its $10 billion sourcing goal, its investments in India’s suppliers, MSMEs, and digital economy are set to strengthen the country’s position as an export hub. By fostering innovation, building local partnerships, and embracing India’s evolving market landscape, Walmart is not just expanding its own footprint but also contributing to the nation’s global trade aspirations.

India’s role in Walmart’s strategy exemplifies how international corporations can align their growth objectives with a country’s economic development, paving the way for mutually beneficial outcomes.