With India and United States likely to discuss foreign direct investment (FDI) in retail during US president Barack Obama's India visit, Walmart, the American retail giant has pitched for 100 percent FDI in the retail sector.

“Hundred per cent FDI would be the solution for all constituents and stakeholders in the retail sector,” Mike Duke, President and CEO, Walmart said in New Delhi at a FICCI conference.

However, he said he was content with the pace of FDI reform in this sector in India. “Walmart respects the government’s calibrated approach. Foreign ownership of retail has beneficial effects on suppliers and farmers alike”, Duke said.

Duke also announced the company's plans to buy agricultural produce directly from 35,000 small and medium farmers in India by the end of 2015 and create its third education and training centre in Bangalore soon.

“I am confident that these initiatives would result in a 20 per cent increase in the income of farmers and would have a multiplier effect to benefit 1 million farmers and other workers associated with agriculture,” the Walmart chief commented.

He added that retail sector can contribute to India's economy by way of reducing post-harvest wastage, build a sustainable food supply chain, create opportunities for SMEs and exports.

“I believe that retail FDI would go a long way in reducing food inflation in India by 50-70 basis points by reducing waste and improving the efficiency of the business model through supply chain management”, Duke declared and added that the company will create three million jobs in coming years.

Subodh Kant Sahai, union minister for food processing industries has hinted at opening up of FDI in retail despite many touchy issues surrounding it. “It is very much on the agenda. Let’s see, by next year,” Sahai told reporters on the sidelines of the FICCI conference.

Duke also met commerce and industry minister Anand Sharma and planning commission deputy chairperson Montek Singh Ahluwalia in New Delhi.