| The smartly concluded business alliance, in November, 2006, between Wal-Mart, the US-based, world's biggest retailer and Bharti- India's biggest private sector telecom player, according to NDTV report, appears to have hit political road block at the highest level.
Sonia Gandhi, the all powerful, chairperson of the United Progressive Alliance (UPA)- a coalition of several national and regional political parties, which currently governs the country, has written to the PM, Mr Man Mohan Singh to examine relevant issues concerning the infusion of Foreign Direct Investment (FDI) in the retail sector in India, before taking further decisions in the matter. In her communication, she has made a specific reference to the agreement signed between Wal-Mart and Bharti.
Apparently under pressure from the Leftist parties which are a part of the governing UPA alliance, Sonia Gandhi wants the Government to study the impact of trans-national supermarkets on small scale operators ; mom and pop stores or kirana merchants.
This intervention by the most powerful leader in the political set-up of the country has come at a time when the world's second and third biggest retailers, Carrefour of France and Tesco of the UK respectively, are working aggressively towards stitching partnerships with the local business houses on the lines of Wal-Mart and Bharti joint venture agreement.
While, on one hand, this intervention has the potential of stalling the Bharti- Wal-mart roll out due this August, on the other, it may make other big ticket multi national retailers like Carrefour and Tesco to take stock of the situation and delay their entry in the fastest growing retail market of the world. |
