The Walmart factor

When the government came out with clarifications on the multi-brand retail policy earlier this year, months after the cabinet allowed 51 per cent foreign direct investment (FDI) in the sector, the industry, without exception, had expressed disappointment. Some retailers did so on record, but many preferred anonymity. In fact, it was on the basis of those reservations that retail sector consultants and pundits concluded that no foreign investment was expected until the tough riders on sourcing and investment were relaxed. But with UK's Tesco filing the first FDI application in multi-brand retail, the industry is now pointing its fingers at American chain Walmart for making all the noise over "stringent conditions" linked to the policy. Walmart's Asia head Scott Price had recently said coming into multi-brand retail in India under the conditions imposed was not feasible.