Ministers Start to Buck Under Pressure

In true Indian style, Indian Commerce and Industry Minister, Kamal Nath, said the government will examine the JV of Bharti and Wal-Mart. This is after CAIT and CPI and others have voiced out against the same and in light with the undecisiveness and extended delays with the Government framing a clear cut policy for FDI in Retailing. Using the Cash and Carry model is being disputed as a back door policy now.

Whatever the government may decide may have much huge implications as this is not the first such entry of an International Retail Chain. Germany's Metro, South Africa's Shoprite have already set shop here along with Australia's Woolworth with Tata in a similar agreement that Bharti and Wal-Mart are adopting. Any adverse change in policy can turn the tables for existing entrants. Something to watch out over the next few weeks while the government is going to buck under industry pressure.

Traders at Delhi are already fed up with the government with its sealing drive and now with Wal-Marts entry, the unorganized trade is definitely feeling the pressure and let down from the government by offering no real protection.

Comments

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[bob nathan]

When Shoppers stopper, Pantaloon, Food World made entry - there was no hue and cry. It was thought a welcome change, and the customers felt that " under one roof, we can get quality, quantity & Price".

Why create hue and cry at all. The small traders [ Marwadi shops, kirana stores etc] like any other convenient stores in west, has it market segmentation, and they will survive. Profits will crash and credit could become the bane.

In this trans-global era, all are welcome and sustain growth through healthy competition.