Walmart moved from China towards India for lower import costs

In an effort to save costs and diversify its supplier base. Walmart plans on bringing more items into the United States from India and minimizing its dependence on China. According to data observed by Trends.

During January and August in the current year. The biggest retail store in the world transported 25% of its importation into the United States from India. Corresponding to bill of transportation data that data firm Import Yeti provided with Trends. In contrast, that was only 2% in 2018.

The identical information indicates that over the same time frame. China contributed to approximately 60% of its sales, versus 80% in 2018. Indeed, China continues to be Walmart’s top import destination.

This change demonstrates how big American corporations are purchasing more across countries. Such as Thailand, India, and Vietnam as a result of growing import costs from China as well as growing political situation among Beijing and Washington.

According to Andrea Albright, Walmart’s senior vice president of procurement, “we desire the most competitive prices,” in a statement. This implies that the supply chains we have need to be resilient. Regarding my goods, I cannot depend on a single supply or location as we are always dealing with issues like earthquakes, hurricanes, or material shortages.”

Walmart stated in an announcement that while the bill of shipping data provided a partial view of what it obtained. Increasing redundancy “does not always mean” indicate the company was lowering its reliance upon any particular market for procurement. “We’re expanding our organization that are making efforts on obtaining increasing manufacturing ability,” Walmart stated.

According to Albright, Walmart’s ambitions to increase its production capacity have seen India emerging as a crucial component.

Following its acquisition of a 77% share in Indian e-commerce company Flipkart in the year 2018. Walmart continues to be rapidly expanding its operations in India. It promised, two years afterwards, to bring in $10 billion worth of commodities from India annually by 2027. According to Albright, it is still on course to meet that goal. At the moment, it imports commodities from India valued at about $3 billion annually.


Walmart is bringing products into the United States from India, including gadgets, children’s toys cycles, and medications, according to Albright. She also mentioned that pasta, dry cereals, and processed food are prominent imports from India.

India’s stock market has surged to all-time highs this year, and analysts believe that this nation is most suited to surpass China in huge-scale, low-cost production.

Walmart was drawn to the company by its quickly expanding staff and cutting-edge technology, according to Albright. Conversely, China said last year that its population has decreased for the first time in 60 years.

In Bangalore, Walmart began its procurement activities in 2002. Currently, the corporation employs over 100,000 individuals in the nation, including temporary staff members dispersed across many locations under its procurement processes,  PhonePe, Flipkart Group, and Walmart Global Tech India unit.

Indian PM Narendra Modi and Walmart CEO Doug McMillon meeting in May of this year; Modi described the discussion as “a beneficial one.”

May 14: “Happy to see India emerge as an attractive destination for investment,” tweeted Modi on the Twitter platform. Walmart, according to McMillon, would “continue to support the country’s manufacturing growth and create opportunity.”

Amazon, a competitor of Walmart, stated last month that it hopes to export $20 billion value of goods from India until 2025.

One business which has profited is Free will Sports, a little Indian sports ball provider, by chief executive Rajesh Kharabanda during an interview.

According to supply chain specialists, another factor in the shift to India has been the growing cost of shipping products from China.

“In comparison to other production centers, procurement from China’s mainland is becoming less competitive due to increasing labor expenses,” stated Chris Rogers, an analyst at S&P International Market Intelligence’s Panjiva analysis of supply chains department.

China’s minimal salary ranges between 1,420 yuan to 2,690 yuan ($198.52 – $376.08) each month’s salary. With variations occurring from province to province and occasionally from city to city. Based on central bank projections, the average monthly salary for untrained and semi-skilled employees in India ranges from around 9,000 Indian Rs to 15,000 Indian Rs ($108.04 – $180.06).


The COVID-19 pandemic revealed flaws in international supply networks and demonstrated the over dependence of importers from the US on a limited number of the markets.

Walmart’s policy will also help Pakistan and Bangladesh. Which have grown as the suppliers of clothing and household goods, according to Albright.

In accordance with U.S. imports records, the Mundra Port in Gujarat, the biggest privately port in India, was the port of departure for at least eight Free will shipments that made their way to Walmart storage last year.

According to the central bank of India, the GDP of the nation would grow by 6.5% in the current fiscal year. This year, China is predicted to increase by about 5%.

“It has definitely been a greater impact over the past 12 to 18 months,” stated Shekhar Gupta, whose family’s firm Devgiri have been supplying Walmart with floor carpets for over ten years.

($1 = 7.1528 Chinese Yuan)

($1 = 83.3050 Indian rupees)

Leave a Reply

Your email address will not be published. Required fields are marked *