Wal-Mart enters India's retail market amid new rules

Wal-Mart plans to open retail outlets in India in the next 12 to 18 months, the company said Friday, making it the first multinational to jump on the government's decision to open the country's huge retail market to foreign players.

Raj Jain, the managing director of Bharti Wal-Mart, a joint venture that operates 17 outlets that cater to small businesses in India, confirmed by email that Wal-Mart plans to open stores that serve consumers over the next 18 months, but declined to say how many.

India announced last week that it would allow foreign firms to take a majority stake in multi-brand stores for the first time. The surprise decision cheered investors but cost the ruling Congress Party an important coalition ally.

New Delhi first tried to enact the measure last year, but backed down in the face of resistance from coalition partners, badly damaging its credibility with global investors. Prior to the reversal, foreign retailers like Wal-Mart could only operate wholesale outlets.

Opponents say the move will cost Indians jobs and decimate millions of mom-and-pop shops. Advocates say welcoming players like Wal-Mart is necessary to attract the investment needed for India to modernize its food supply chains, reduce waste and bring down spiraling food prices.