BackWal-Mart halts India-specific lobbying in US
Wal-Mart spent close to $2 million on various lobbying activities during the second quarter ended 30 June
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Washington/New Delhi: Global retail giant Wal-Mart has stopped its lobbying with the US lawmakers on India-specific issues, after continuously seeking their support for about five years to facilitate its entry into the high growth Indian market.
The disclosure incidentally comes at a time when Indian 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.
According to the latest lobbying disclosure reports filed by Wal-Mart and its registered lobbyists with the US Senate and the House of Representatives, the company spent close to $2 million (about Rs12 crore) on various lobbying activities during the second quarter ended 30 June.
However, no India-specific matter figures among close to three dozen issues discussed by Wal-Mart and its lobbyists with the lawmakers in the US during this period.
This has come as a major departure from the prior period lobby disclosure reports, including that for the preceding quarter (January-March 2013) wherein ‘Discussions related to FDI in India’ figured as one of the lobbying issues, the Congressional records show.
The company had spent a similar amount of about $2 million in the previous quarter as well on its lobbying activities, which are being undertaken by it directly as also through close to 10 other 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 Wal-Mart has permanently stopped lobbying on India-related issues, or it is only a temporary halt.
Wal-Mart and many other overseas supermarket chains have been wanting to set shop for many years in India, which opened up this business for foreign players last year with a 51% equity cap despite stiff political opposition.
Still, there are many restrictions, such as those on sourcing of products, that are keeping foreign multi-brand retailers away from the country.
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