Wal-Marts first India centre next week

Wal-Mart Stores Inc is set to open its first cash-and-carry centre in India next week in a signal of foreign investor confidence...

Wal-Mart Stores Inc is set to open its first cash-and-carry centre in India next week in a signal of foreign investor confidence in India just days after a reform-minded Congress-led coalition won an election.

The entry of multinational retailers like Wal-Mart into India has been mired in controversy,with moves to open up the sector opposed by the previous government’s former leftist allies and small traders fearful of job losses.

Bharti Wal-Mart Pvt Ltd,a joint venture of Bharti Enterprises and Wal-Mart,will open the wholesale centre in Amritsar,a spokesman said. It will be opened early next week, Arun Mowar told Reuters.

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India’s fragmented and tightly-controlled $400-billion retail industry is forecast to nearly double in size by 2015,but less than 5 percent of the market is in the hands of modern retailers.

The timings opportune. It will be seen as a positive sign to others who are waiting on the sidelines, said Arvind Singhal,chairman of consultancy Technopak Advisors.

It is reason to be optimistic that we will see a fair amount of interest in the retail sector,and to expect that we will see some reforms in retail, he said.

Wal-Marts Indian venture,which had been planned for 2009,as well as alliances of other global firms keen for a toehold in the rapidly expanding market,have been delayed by fierce opposition from small traders.