India backs away from Wal-Mart
The government has suspended a plan to allow foreign companies to own as much as 51% of local supermarkets.
That's the kind of controversy India found itself in last month after giving Wal-Mart and other foreign companies the green light to own up to a 51% stake in supermarkets. Smaller shopkeepers worried that Wal-Mart, with its rock-bottom prices and competitive prowess, would put them out of business.
"If Wal-Mart tries to open its mall anywhere, I will burn it myself," said Uma Bharti, a former state chief minister who opposes the plan, according to Reuters.
The issue turned into a crisis, leading India to suspend the decision this month. The reversal is a blow to Prime Minister Manmohan Singh's work to bring in more foreign investment, Bloomberg reports. Singh said the move would create millions of jobs and curb inflation, but many weren't buying it.
Local merchants closed their shops on Dec. 1 in a one-day strike against allowing global retailers.
Wal-Mart wasn't saying much publicly about the decision. Neither was France's Carrefour (CRRFY), which was mentioned as another global retailer that could benefit.
Others said the move shows that it's becoming harder for outside companies to enter into India, one of the most promising emerging consumer markets in the world. Starbucks (SBUX), Dunkin Brands (DNKN) and other companies are forming alliances in order to open outlets in the populous country.
"It was easier to operate in the country a year ago than it is today," the CEO of General Electric's (GE) Indian unit told Bloomberg. "It is frustrating to look at unresolved issues and know that they’re resolvable if you can get some leadership and orientation around them."
Wal-Mart already has a toehold in India. The government already allows foreign companies to own wholesale stores, and Wal-Mart has set up 14 of those in a joint venture with an Indian firm.
VIDEO ON MSN MONEY
WalMart is not America, folks.
India is not hurting America, just keeping Walmart from hurting India the way it is hurting America.
If only local governments in this country had as much wisdom maybe their small cities and towns would still have a economy.
So...lets stop whining over other countries and lets start set things right here. Let us stop buying items from other countries and also, stop selling them the fighter planes, guns, and bombs.
Way to go India. U.S pay attention and learn a lesson. Bring manufacturing back to US . Americans, buy made in America and soon Wal-Mart will be history. No one needs that much crap.
I think the Indians are smart to prevent Wart*Mall from coming in. That company has done nothing but destroy main streets all across the USA. It is a blight and an eyesore. My small town had every single store on main street shutdown because of Wart*Mall. Don't make the same mistake we did. Our town looks like hell now. It used to be beautiful, almost like an old Hollywood movie. The people who used to own the stores were neighbors. Now, all the profits got to outsiders who don't care.
Revolt! Jan 1, no one call any technical support numbers.
(sarcasm, in case you missed it)
They don't want Chinamart shitting up their area. I wouldn't either.
Due to China govt Currency practices, there might be a situation that US Govt would ban or apply taxes to imports from China. In that case, it is better for us...'us' the consumer and US Citizens, if Walmart has no other import points. At least that way, US may have some manufacturing jobs. If India allows Walmart to Sell, then Walmart would gradually develop another cheap manufacturing import point for itself...'for itself'..not for 'us'.
Yes I have had to call G.E. call center in India before and I could understand them fine! OH hell that is not why I'm on here!!!!!!
Why would you want Walmart in your country? All they sell is cheep made china junk here in the U.S. ! !
All they would do is shut the doors on all the mom and pop's stores in your country ! Come look at Any small town in the U.S. and are mom and pop's are long , long gone ! Oh yes they bring Lots of jobs, but not good jobs!
Good for India! Wal-mart would destroy the local small businesses just like it did here.
Copyright © 2014 Microsoft. All rights reserved.
More Market News
|There’s a problem getting this information right now. Please try again later.|
MUST-SEE ON MSN
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'