Walmart says cannot meet India’s local sourcing rules

walmart beijing

India is really struggling to open up its foreign direct investment in retail. It would really be difficult for them to source 30% given the lack of a consistant transportation network. It is also getting to the point that the toll tax for large vehicles is becoming a limiting factor for interstate transport.  Walmart has been working with various groups for years to try to source things within the country but one of the biggest difficulties in the country is transport. It is the only country in the world where it costs more to move commercial traffic via rail then via road. Under rules introduced when the government opened up the sector in 2012, foreign supermarkets are required to buy 30 percent of their products from local small-scale industries.

http://mobile.france24.com/en/20130724-walmart-says-cannot-meet-indias-local-sourcing-rules

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