Foreign direct investment (FDI) is unlikely to be allowed in retail trading till a political consensus is evolved on the issue.
With the dust yet to settle over the decision to allow FDI in branded retail, the larger issue of opening up retail to foreign investment would not be taken up till the elections in West Bengal, Tamil Nadu, Kerala and Assam are over.
An indication to this effect has been communicated to a visiting Wal-Mart team informally. The official version, of course, is that FDI in retail is under consideration. Wal-Mart is the largest retailer in the world, with a turnover that beats every other multinational corporation.
During formal interactions, the visiting Wal-Mart team was told that FDI in retail is being considered though no decision has been taken. Informally, however, the officials have hinted that the political climate is not favourable at this juncture.
The US-based company is still hopeful and the high-powered team led by Wal-Mart International's chief Michael Duke made optimistic enquiries about the status of FDI in retail, officials said.
The team also discussed various aspects related to enhanced sourcing of Indian goods, they added. The team met officials of various departments including the ministry of textiles.
Last year, John Menzer, CEO of Wal-Mart International (he has swapped roles with Duke since then) did hectic lobbying with the Manmohan Singh government to open up FDI in retail.
marketing@alchempro.com
