FDI in retail: Walmart, others seek US government help to enter India

There are reasons to believe that the government has not given up its efforts to allow Foreign Direct Investment (FDI) in multi-brand retail trade. Vigorous lobbying by multinational retail giants such as Walmart to force the Indian government to allow them to open multi-brand retail outlets is also going on intensely. Moreover, the United States of America and the European Union have been demanding that India permit FDI in its retail trade. India has obviously resisted the demand till date. Their object is that large international chains must control the food supply chain and the distribution of other items of daily utility in India, which is one of the world's largest markets accounting for over 1/6 of world's population. Curiously, in an interview to Press Trust of India, on 15th July 2012, the US President Barack Obama stated:“ In too many sectors, such as retail, India limits or prohibits the foreign investment that is necessary to create jobs in both our countries, and which is necessary for India to continue to grow.” Obama’s above statement does not seem to be a passing reference made unwittingly. Certainly, it is the result of powerful lobbying by the multinational retail giants to open up the Indian retail market.. Anyway, it is deplorable for an American President to be seen advising India on a sensitive subject that has been hanging fire for many years now.

Dr.C.Murukadas,  The Economic Times August 1, 2012