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In a strong reaffirmation of its long-term commitment to Walmart India, Walmart Inc., the world’s largest retailer has reiterated its pledge to source $10 billion worth of goods annually from India by 2027. This ambitious target, first set in 2020, is part of Walmart’s broader vision to triple its exports from the country, cementing India’s role as a key sourcing hub in the global retail supply chain.
Doug McMillon, President and CEO of Walmart Inc., made the announcement during his recent visit to India. His remarks reflect Walmart’s growing confidence in India’s capabilities, not just as a market, but as a powerhouse of manufacturing, technology, and innovation.
Walmart began its sourcing operations in India more than two decades ago, starting in Bengaluru in 2002. Over the years, India has become an increasingly important pillar in the company’s international procurement network. The reaffirmation of its $10 billion annual sourcing goal is not just a reiteration of past plans, and it signals Walmart’s intent to deepen its presence in the Indian supply chain ecosystem.
This move aligns closely with India’s “Make in India” initiative, which encourages local manufacturing and aims to turn the country into a global export hub. Walmart’s growing procurement volumes will directly support this goal, enabling Indian suppliers to integrate into international markets and adopt global standards.
Walmart’s connection to India isn’t limited to exports. A significant part of its Indian strategy is tied to its majority ownership in Flipkart, one of the country’s leading e-commerce platforms. In 2018, Walmart acquired a 77% stake in Flipkart for $16 billion, marking its largest-ever investment in an overseas market. Over time, it increased its stake to 80.5% by investing an additional $3.5 billion.
Through Flipkart, Walmart now participates in an Indian e-commerce ecosystem valued at a staggering $70 billion. This ecosystem includes a range of businesses across e-commerce, digital payments, logistics, and consumer tech.
Flipkart’s broader portfolio includes Myntra, a leading fashion e-commerce platform, and Shopsy, a budget shopping app tailored for tier 2 and tier 3 cities. Furthermore, Walmart’s indirect ownership in PhonePe, which was spun off from Flipkart in 2022, extends its reach into India’s rapidly growing fintech space. PhonePe serves more than 600 million users and is preparing for a major IPO, reflecting the scale and influence of Walmart’s digital footprint in India.
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India has become indispensable to Walmart’s global strategy for several key reasons. First, the country’s robust and diverse manufacturing ecosystem offers a wide range of export-ready products. Walmart has identified India as a key supplier for categories including textiles, apparel, home décor, homeware, electronics, pharmaceuticals, health & wellness, organic food, general merchandise, toys, shoes, and bicycles. These products are well-suited to Walmart’s global retail needs across markets like the United States, Canada, Mexico, and the United Kingdom.
Second, India’s cost competitiveness, combined with a skilled labour force and improving infrastructure, makes it a prime destination for global sourcing. The government’s policy initiatives such as the Production Linked Incentive (PLI) schemes and ongoing logistics reforms are further enhancing India’s manufacturing and export readiness.
Third, the pandemic-induced supply chain disruptions underscored the importance of diversification. As companies worldwide seek to reduce overdependence on single-source suppliers like China, India is emerging as a preferred alternative. For Walmart, ramping up sourcing from India helps mitigate geopolitical and logistical risks while supporting resilience and sustainability goals.
Walmart’s engagement with India is not transactional, it is deeply relational. The company works with thousands of local suppliers, providing them access to international markets while supporting them in meeting global standards. Walmart’s supplier development initiatives include training programs, compliance support, and investments in capacity building.
This approach not only ensures quality control for Walmart but also uplifts India’s small and medium-sized enterprises (SMEs), many of which are now exporting products under Walmart’s global supply umbrella. These relationships are mutually beneficial, strengthening India’s export potential while helping Walmart meet rising consumer demand across its markets in the US, UK, Canada, and beyond.
Walmart’s focus is not limited to large manufacturers. It actively engages with smaller enterprises and rural producers through inclusive sourcing models. This ensures that the benefits of globalization reach grassroots-level stakeholders as well.
Walmart’s $10 billion sourcing target will have a substantial impact on the Indian economy. The increased procurement volumes will generate employment across sectors such as textiles, manufacturing, food processing, logistics, and quality assurance. The associated demand will also boost ancillary industries like packaging, warehousing, and freight services.
Additionally, Walmart’s efforts in supply chain digitization and infrastructure development will contribute to India’s long-term export competitiveness. With a focus on sustainability, Walmart is also encouraging suppliers to adopt eco-friendly production practices, creating a positive environmental ripple effect.
Beyond economic value, Walmart’s initiatives are helping transform India’s supply-side capabilities. From skill development programs to technology adoption, Indian suppliers are gaining exposure to global best practices, making them more competitive both locally and globally.
Walmart’s sourcing journey in India has seen many evolutions. After launching operations in 2002, the company entered a joint venture with Bharti Enterprises in 2007 to run a cash-and-carry business under the “Best Price Modern Wholesale” brand. However, this partnership ended in 2013 due to strategic differences.
Post-2013, Walmart pivoted to focus on sourcing and e-commerce. This transition has proven successful, as reflected in its robust relationship with Flipkart and the steady rise of Indian exports to Walmart’s international operations. What started as a back-end sourcing center has today become a crucial node in the company’s global supply network.
Achieving the $10 billion annual sourcing goal by 2027 will not be without challenges. The suppliers must continually adapt to meet changing international quality standards, navigate regulatory complexities, and build digital and physical infrastructure to support scale. Walmart, on its part, will need to work closely with government authorities, logistics providers, and tech partners to facilitate smooth operations.
However, the path forward looks promising. India’s e-commerce and manufacturing sectors are growing rapidly. The government is actively promoting exports through policy incentives and trade facilitation reforms. Walmart, with its scale, capital, and commitment, is well-positioned to ride this wave of growth.
Doug McMillon’s statement during his visit, in which he appreciated the long-standing partnerships Walmart has built in India, highlights the company’s belief in the country’s potential as both a sourcing destination and a strategic partner for global success
Walmart’s reaffirmation of its $10 billion annual sourcing target from India marks a significant milestone in the evolving relationship between India and global trade. Alongside its $70 billion involvement in the digital and e-commerce economy through Flipkart, Walmart’s strategy reflects a well-rounded commitment that extends well beyond procurement. This is not just a business story; it is a story of collaboration, growth, and shared ambition. As India aspires to become a global manufacturing leader, Walmart’s long-term investment and sourcing goals are set to play a catalytic role in shaping that journey. The path to 2027 holds the promise of mutual benefits, including a stronger global supply chain for Walmart and a more prosperous, export-driven future for India.
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Walmart has pledged to source $10 billion worth of goods annually from India by 2027. This initiative supports India’s “Make in India” mission and positions the country as a key player in Walmart’s global supply chain, enabling local manufacturers to access international markets.
Walmart owns a majority stake in Flipkart, India’s leading e-commerce platform, and is also the majority shareholder in PhonePe, a top digital payments company. Although PhonePe was spun off from Flipkart in 2022 and now operates independently, both companies remain key pillars of Walmart’s diversified digital strategy in India. Flipkart strengthens Walmart’s retail and e-commerce presence, while PhonePe gives it a strong foothold in the fast-growing fintech and payments sector.
Walmart’s initiatives are expected to drive job creation, empower small and medium enterprises, and boost local manufacturing. Its focus on sourcing, digital infrastructure, and sustainability will enhance India’s export capabilities and global competitiveness.
