Wal-Mart makes India debut

NEW DELHI, May 21 (UPI) -- U.S. retail giant Wal-Mart is all set to gain its foothold in India, ending years of opposition from Indian retailers, the company said.

Wal-Mart's India entry next week will be a joint venture wholesale store but Financial Times reported such modern retail ventures have not made much of an impact in a country where most customers are used to small independent shopkeepers.

Calcutta's Telegraph reported the new store, to be called Best Price Modern Wholesale, will open in Amritsar in the northern Punjab state.

"It will open early next week," Wal-Mart's India spokesman Arun Mowar was quoted as saying.

The world's largest retailer plans to open 10 more outlets in India in the next two years. The Telegraph said Indian consumers will not be able to shop at the Amritsar outlet. As a wholesale unit, it will cater mainly to vegetable vendors, hospitals, hotels and restaurants.

India's retail market is forecast to double in another six years from the current $375 billion, the report said.

Earlier, Wal-Mart had faced tough opposition in India from small traders and the Left parties. The debacle of the Left parties in the latest elections is expected to make the company's entry smoother, the report said.

"The new government should look at opening up retail by bringing in foreign direct investment," said Rajan Bharti Mittal, vice chairman of Bharti Enterprises, which is the Indian company in the joint venture.

Britain's Marks and Spencer and Tesco also have concluded alliances with local Indian partners, Financial Times said.