New Delhi: Wal-Mart's India operations have been stalled due to sourcing restrictions, but the world's largest retailer has got no reassurance from the government with the ruling Congress declaring: "If Wal-Mart goes, other 'marts' will come."
"Why should the government think about it? The government has not made the policy for one business house. It's a national policy in an open world. If Walmart has gone, more marts are there, they will come" Congress spokesperson Raj Babbar said, after Wal-Mart said it could not meet a key norm in the multi-brand segment that requires 30 per cent sourcing from small industries. Wal-Mart said it can procure only about 20 per cent.
Mr Biden's delegation pushed for simpler rules to make it easier for foreign firms to open shop in India. The Vice-President, in his meeting with Prime Minister Manmohan Singh, was also reported to have flagged the issue.
But on Tuesday, an important signal came from political parties across the spectrum, including parties that have fiercely opposed FDI in multi-brand retail. No party pushed for scrapping FDI in multi-brand retail.
The lack of political opposition to FDI may be a big confidence boost for the industry, but a regulator could also mean increased bureaucracy for foreign investors to overcome.
"Why should the government think about it? The government has not made the policy for one business house. It's a national policy in an open world. If Walmart has gone, more marts are there, they will come" Congress spokesperson Raj Babbar said, after Wal-Mart said it could not meet a key norm in the multi-brand segment that requires 30 per cent sourcing from small industries. Wal-Mart said it can procure only about 20 per cent.
Mr Biden's delegation pushed for simpler rules to make it easier for foreign firms to open shop in India. The Vice-President, in his meeting with Prime Minister Manmohan Singh, was also reported to have flagged the issue.
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But on Tuesday, an important signal came from political parties across the spectrum, including parties that have fiercely opposed FDI in multi-brand retail. No party pushed for scrapping FDI in multi-brand retail.
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The lack of political opposition to FDI may be a big confidence boost for the industry, but a regulator could also mean increased bureaucracy for foreign investors to overcome.
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