Amid growing political opposition in India for easing of foreign investment norms in retail and other sectors, US-based companies like Wal-Mart and Prudential Financial are lobbying hard with their own lawmakers here to garner support for their Indian business expansion plans.
As per their latest lobbying disclosure reports filed with the House of Representatives and the Senate, the US-based companies and industry groups spent millions of dollars since the beginning of this year towards lobbying on issues including FDI in India, changes in Indian taxation framework and various other trade-related matters.
Wal-Mart Stores, which has been trying to set up multi-brand shops in India for a long time, spent nearly $ 1.5 million on lobbying in the last quarter ended June 30, 2012 on various issues, including matters “related to FDI in India.”
The world’s largest retailer’s lobbyists presented its case with the Senate, the House of Representatives, the US Trade Representative and the Department of State during the last quarter.
Wal-Mart has been lobbying among the US lawmakers since 2007 to garner support for its plans to enter India and its lobby issue earlier included “enhanced market access for investment” in India.”
However, the company’s lobbying issues during the first quarter of 2012 did not include India-related matters, presumably because chances had improved at that time for Indian government allowing FDI in multi-brand retail business.
While the Government is pushing hard to evolve a political consensus for allowing FDI in multi-brand retail, the opposition has increased manifold in the past few months.
Besides retail sector, the US companies are also lobbying for market access in a host of other businesses. Among these, Dow Chemicals had “Trans Pacific Partnership Market Access — India” as one of its lobbying issues in the last quarter, when it spent more than $3.6 million on various lobby issues.
Financial services giant Prudential Financial Inc has spent nearly $4 million so far in 2012 on various lobbying matters, including those “relating to India financial services market access and equity ownership issues“.
Other major entities having spent big bucks in the last quarter on issues related to trade with India include Dell Inc, Morgan Stanley, Xerox, Cargill Inc, Aerospace Industries Association of America and Chamber of Commerce of the US.
Besides, Honeywell International is lobbying on “issues related to engine upgrades for Indian military aircraft”, and Medtronic lobbied on matters including those “relating to improving medical device regulation in India” during the last quarter.
Keywords: FDI, foreign direct investment and India, India plans on FDI, Wal-Mart, Prudential Financial, US companies lobbying, multi-brand retail, Dow Chemicals,
Comments:
In an earlier statement government assured that the multiband retail
will procure indian goods to sell to indian public. Already, many
indian retail outlets on hire purchase are already doing it. They can
go cheap only if our government gives them free accommodation, free
water, free electricity, tax holiday and all other services for which
common indians are charged. is it that government intends to it. These
multbrand retailers will certainly procure substandard chinese stuff
to thrust on indians and many products like toys, milk powder etc.,
are already banned. Yes let us invite them for investing in coal
mining, metal mining, domestic and international flights, air port,
sea port upgradation etc., Will they go cheap in print media industry,
Legal profession, advanced medical services? Already our local soft
drink industry is killed by the coke etc., without any substantial
increase in employment potential but sucking out our precious ground
water in fertile agricultural areas.
Wal-Mart and others are reported to be lobbying vigorously both in US and India
with lawmakers. What does 'lobbying' mean ? Isn't it trying to 'bribe' the respective
govt machineries to allow multi-brand retailing and their interests. It is "win-win"
for lawmakers on both sides. Such 'lubricants' will not come under the ambit of
any kind of Lokpal or investigating agency,as these are only policy decisions.
Globalization and open market policies are meaningless, as long as gap between
rich and poor are widening.There is no harm in rich getting richer as long as this
gap is narrowing. Since liberalization, it has only widened. Can an 'aam aadmi'
branded as NOT POOR by govt economists for 'earning/ spending about Rs 28/-
per day be able to even peep into a multi-brand retail outlet ? Permitting retailing
will additionally jeopardize livelihood of millions of small traders aggravating job
situation. Shame, lawmakers come to power largely on support of 'aam aadmi',but
later forget them.
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