The ascendency of India as an economic world power

Wal-Mart bosses have been trying to enter into the Indian market for the last few years. They could not do it until now because of Indian law. Now, they have found a loophole in the system and are entering in Indian market very soon. Many people are unhappy with the possibility of Wal-Mart’s presence in India. Thousands of small shopkeepers fear that they might lose their livelihood if Wal-Mart comes to India. They are now angry and some of them went to the street.

Houston Chronicle wrote:

Wal-Mart formed a joint venture this week with Bharti Enterprises, a large Indian cell phone company, to build as many as 15 large wholesale outlets over the next seven years.

Ordinary Indians will not be able to shop directly in the new stores, and they took to the streets Thursday amid fears that Wal-Mart's presence could eventually undermine the small retailers that dominate the country. However, many in the nation's burgeoning middle class have welcomed new malls and megastores.

Under current law, India does not allow multibrand foreign retailers to sell directly to consumers, but they can open wholesale operations.

The irony is that Indian government is pushing for economic reforms and modernization. They are trying to attract more and more foreign investment. Indian companies are also trying to become global and invest in other countries. So, Wal-Mart will be a test case for India.