Wal-Mart to increase outsourcing from India

World’s largest chain of retail stores Wal-Mart is now planning to increase its outsourcing from the Indian market. This is good news for the Indian textile market which benefits a lot from exporting its products to the Wal-Mart. The company has already been expanding their targets from the Indian market by 30% every year since the last couple of years. For the current year, this growth would be closer to a massive 40%.

The company has already outsourced goods worth about $1.2 billion and intends to source goods worth a little over $300 million this fiscal. A representative of the company in India has already confirmed this news. Wal-Mart claims that the Indian textile is one of the major growth drivers for the company. A Wal-Mart India spokesperson said: “Nearly 50 per cent of our total sourcing from India is from textiles such as apparel and home furnishings, and we are pretty bullish on India. We are targeting to grow by 40 per cent this year as against our earlier estimate of 30 per cent growth”.

Wal-Mart outsource textile and handicraft goods from a lot of Indian companies and plan to get more companies to supply goods to it. some other markets to get benefited from this new aggressive Wal-Mart is expected to be the leather goods and jewellery makers in India. It has also set its sight on commodity items such as spices, rice, tea, and seafoods to widen its scope of sourcing from the country.