The Hindu Business Line : `US awaiting Indian Govt's decision on Wal-Mart entry'

THE US Commerce Secretary, Mr Carlos M. Gutierrez, and the CII Vice-President, Mr Sunil Mittal, at a luncheon meeting with Indian businessmen in the Capital on Wednesday. — Ramesh Sharma

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New Delhi Feb. 14 The US on Wednesday said it was awaiting the Indian Government's response to the entry of Wal-Mart into the country.

"We will have to see what Government officials decide," said Mr Carlos Gutierrez, US Commerce Secretary, while commenting on the Bharti-Wal-Mart joint venture's foray into the Indian retail sector.

"Since India is a vibrant and energetic democracy, intense debate over Wal-Mart's entry in to the country is happening, in the same way debates occur in any other democracy. We will see what Government officials ultimately decide," Mr Gutierrez said.

Pointing out that Wal-Mart's entry into India would not only benefit millions of farmers but also smaller retailers due to greater efficiency in the supply chain, he said,

"Foreign investment will be prohibited in the front end but there could be some partnership structure in wholesale. It could represent effective outlet for farm products and bring benefit to farmers as well as the agricultural sector."

Mr Gutierrez said, "While the Indo-US trade grew over 20 per cent on year-on-year in 2006 to $32 billion, India's exports to the US grew 16 per cent to $22 billion. Imports by India from the US increased at 26 per cent to $10 billion in the same period." Both countries have set a target to double bilateral trade by 2010, he said.