The world’s largest retailer the nearly $430- billion Wal-Mart Inc has decided to stop its India-specific lobbying with the American lawmakers, after seeking their support for about the past five years to facilitate its entry into the third largest Asian economy.
The disclosure comes when the Manmohan government is preparing a report to be presented in Parliament next month, based on findings of a probe into Wal-Mart's US lobbying activities for getting an access to India, domestic media reports quoting PTI said.
According to the latest lobbying disclosure reports filed by Walmart and its registered lobbyists with the US Senate and the House of Representatives, the company spent close to $2 million (about Rs 12 crore) during the second quarter ended June. However, no India-specific matter figures among close to three dozen issues discussed by Walmart and its lobbyists with the lawmakers in the US during this period.
This is a major departure from the prior period lobby disclosure reports, including that for the preceding quarter (January-March) wherein discussions related to foreign direct investment (FDI) in India figured as one of the issues, the Congressional records show. The company had spent a similar amount of about $2 million in the previous quarter as well on lobbying, directly and through close to 10 registered lobby firms.
The matters related to FDI rules in India have figured among the "specific lobbying issues" for the company since at least 2008. It could not be ascertained whether Walmart had permanently stopped lobbying on India-related issues. Walmart and many other foreign supermarket chains have been wanting to set shop for many years in India, which opened this business for foreign players last year with a 51 percent equity cap despite stiff political opposition.
Still, there are many restrictions, such as those on sourcing of products, which are keeping foreign multi-brand retailers away from the country. While Walmart and other foreign retailers continue to seek further easing of rules in India to help them set up their businesses, the government is preparing a report for Parliament on its Walmart lobbying probe. The one-man probe panel could not satisfactorily conclude its inquiry as it could not get necessary details on various issues.
