Wal-Mart spends Rs 125 Crore to enter Indian Market
TNI Bureau: While the government used all manipulative tactics and bullying to win the debate on FDI in Retail both in Lok Sabha and Rajya Sabha, the latest report, which came directly from the US Senate, has put it in an embarrassing position. The BJP and Left feel their stand vindicated, as the US Senate report confirmed that Wal-Mart had spent Rs 125 crore in the last four years to get an entry to the Indian market.
Wal-Mart lobbied with the US lawmakers so that they fight its case. Wal-Mart knew it was not easy for the global retail giant to set its foot in India, where it has many critics than followers. It was evident when at least 14 major political parties voted against FDI in Multi-brand retail during the debate in Indian Parliament last week.
As per the lobbying disclosure reports filed by Wal-Mart with the US Senate, it has spent $25 million (approximately Rs 125 crore) since 2008 on its lobbying activities to enter the Indian market. The retail giant lobbied with the US Senate, the US House of Representatives, the US Trade Representative (USTR) and the US Department of State. From July 2012 till September 2012, it spent Rs 18 crore in total. Wal-Mart has an annual turnover of $444 billion. It also an employee base of 2.2 million worldwide.
It’s an irony that the Indian political class and national media have turned a blind eye to the Wal-Mart menace even though Bharti WalMart CFO (Chief Financial Officer) and four members of its legal team were suspended over bribery charges last month. The internal probe at the Wal-Mart revealed widespread corrupt practices in Brazil, China, India and many other countries. The Enforcement Directorate (ED) is also reportedly probing the charges in India.