Wal-Mart Debate Rages in India

[groovedaddy]

JALANDHAR, India — For multinational merchants like Wal-Mart, it seemed to be the long-awaited opportunity to jump into India with both feet. But on Monday that moment appeared to be delayed once again.

Late last month, as part of a push to modernize his nation’s notoriously inefficient retail economy, Prime Minister Manmohan Singh announced that for the first time big foreign companies like Wal-Mart and the British company Tesco could open retail stores in India.

Until now, foreign companies have been restricted to serving only as wholesalers in India. That has already helped create more modern distribution networks, often while generating better prices for farmers and other producers, and giving customers better deals, too.

But expanding the foreign presence to retailing has been seen as the necessary next step for modernists like Mr. Singh, who has been urging the move for years. Praise for his announcement came from India’s corporations and some of its 175 million farmers, who see the move as part of a wave of changes that might help jolt a slowing economy.

http://www.nytimes.com/2011/12/06/business/global/wal-mart-hears-a-familiar-complaint-in-india.html?nl=todaysheadlines&emc=tha25