India is one of the fastest-growing economies in the world, and its market is set to become the largest globally this year, according to Walmart CFO Brett Biggs. In a conversation with analysts, Biggs expressed confidence in Walmart’s business in India and the potential for growth in the upcoming decade.

India’s economic growth has been impressive in recent years, with the country’s GDP growing at an average rate of 7.5% per year. Furthermore, the country has the world’s largest youth population, and most of them belong to the middle class. This demographic factor is enabling India to become a crucial market for businesses worldwide.

Walmart’s Indian subsidiary, Flipkart, is one of the largest companies operating in the country. Last year, Walmart invested $16 billion to acquire a 77% stake in Flipkart. The move was part of Walmart’s strategy to expand its e-commerce business globally and compete with the likes of Amazon.

Walmart’s CFO recognizes the challenges of operating in India, such as the complexity of the country’s regulatory framework, the need to adapt to the unique consumer demands of the Indian market, and intense competition. Nevertheless, the company is optimistic about its future growth prospects.

According to Biggs, Walmart’s goal is to become the retail leader in India by serving all customer segments, such as small store owners, consumers, and government clients. The company aims to capitalize on the rising middle class in India, which is projected to grow from 50 million to 125 million households over the next decade. With this boom in the middle class, Walmart is looking to offer high-quality products at affordable prices to cater to the needs of consumers across the economic spectrum.

In addition to the middle class, Walmart’s strategy includes expanding to serve smaller cities and rural areas. These regions are experiencing significant growth and are expected to make up a considerable portion of India’s consumer spending in the coming years. By investing in smaller cities and rural areas, Walmart hopes to tap into this growth potential further.

Walmart also plans to leverage Flipkart’s technology infrastructure and supply chain to stay competitive. One of the advantages of Flipkart is its innovative technology, which enables the company to offer consumers unique services such as instantaneous refunds, personalized recommendations, and voice-enabled grocery shopping.

Furthermore, Flipkart’s supply chain allows Walmart to reach consumers in even the most remote areas of India. The supply chain includes many capabilities that aid online ordering, product quality control, inventory management, and logistics. Flipkart’s significant investments in logistics have helped the company reduce delivery times while enabling it to reach more customers in smaller towns and rural areas.

Another advantage of having a strong e-commerce presence in India is the potential to cross-sell Flipkart’s services to Walmart’s global customers. According to Biggs, the company sees tremendous potential in using Flipkart as an innovation incubator to test and learn for Walmart’s broader e-commerce business. Walmart recognizes the potential of leveraging Flipkart’s customer insights, technology, and supply chain capabilities to its advantage in other markets.

Despite the opportunities that India offers, operating in the country remains challenging. One of the most significant challenges is the regulatory environment, which is in constant flux. Walmart and its peers must navigate a labyrinthine set of laws and regulations governing foreign investment, e-commerce, and logistics. Nevertheless, Walmart remains resolute in its commitment to grow in India and overcome these obstacles.

In conclusion, Walmart’s CFO sees India as one of the company’s most promising markets, with enormous potential for growth in the coming decade. By leveraging Flipkart’s technology infrastructure and supply chain capabilities and expanding to serve smaller cities and rural areas, Walmart aims to capture a significant share of India’s burgeoning middle class. With its emphasis on affordable prices, quality products, and outstanding customer service, Walmart is well-positioned to become the dominant retail force in India. If Walmart continues on this trajectory, India undoubtedly may become the largest market in the world, as predicted.