South Asian Business news and information

We often hear jokes about Indian bureaucracy. Foreign companies often have to suffer nightmare to get support from the bureaucracy. Take the case of Wal-Mart. It has been trying to enter the Indian market for a long time but it has succeeded just this week to do so. Of course, Wal-Mart is not going to have totally direct presence. It has formed a joint venture with Bharti Enterprises.

Not everyone is happy with the presence of Wal-Mart in India. The Financial Express reported:

Alleging that Wal-Mart is trying for a “back door entry” to the country’s retail sector by striking a deal with the Bharti Enterprises, the CPI(M) on Tuesday urged the UPA government to block the retail giant operating in India. Sources in the party told FE that the issue might be raised in the ongoing winter session of the Parliament.

“FDI in retail trade is not permissible under the existing policy on foreign investment in India. The Wal-Mart’s franchisee agreement with Bharti Enterprises is an attempt to circumvent existing policy regulations to gain a foothold in the Indian market,” a statement of the party’s politburo said.

Surely, many more politicians will raise their voice against Wal-Mart in the coming days but that surely would not keep Wal-Mart out of India. Wal-Mart bosses are very happy now that they are going to turn India into a very profitable revenue machine for the company.