Sunday, May 30, 2010

Wal-Mart Lobbying with US Government to Enter into Indian Retail Market

Wal-Mart, one of the top retailers in the world, is now planning to come to India. The US-based company is now even trying to get US government’s help in order to break into the lucrative Indian market. It is now keen to grab a chunk of shares in the Indian retail market. However, India’s foreign investment regulation has created some problems for Wal-Mart getting into Indian market.

The company is trying to convince the authorities related to retail business in both the countries. The multi-billion dollar company is also seeking helps from US congress members so that the issues regarding getting access to Indian market are put forward for bilateral negotiations between the two governments.

Foreign direct investment in multi-brand retail business is not allowed in India. However, Wal-Mart is trying to enter into the market through a joint venture deal with Bharti group. The two companies signed the deal back in August 2007. After the agreement was signed, Wal-Mart started planning for Indian market.

Wal-Mart, one of the world’s biggest multi-brand retail businesses, has yearly sales of more than $400. The company has chain of stores in 15 countries. However, the company is restricted only to business to business wholesale market and back-end supply chain business in India. So, it is now lobbying hard to get the permission for investment in multi-brand retail businesses in India. The company has recently revealed that it has so far spent more than $11 million on lobbying in its pursuit of getting access to India’s retail business.

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