Congress president Sonia Gandhi’s letter has prompted the Congress party to review the FDI policy in retail. Sources have told TIMES NOW that the Congress party wants to go slow on FDI in retail ahead of elections.
This after Sonia Gandhi raised concerns about opening up of the retail sector to Foreign Direct Investment (FDI) in particular to US retail giant Wal-Mart’s entry into the Indian market.
On the other hand, the man credited with Wal-Mart’s entry into India, Michael T Duke, is flying in on February 22 to sign the joint venture agreement with Bharti for cash-and-carry as well as the licensing agreement for front-end retail. At the moment, the two have signed an MoU which merely shows their intent to jointly explore retail options in India.
Chief executive and president of Wal-Mart International Duke is likely to announce Wal-Mart's investments, the number of cash-and-carry stores planned and the broad contours of the JV agreement, signalling Wal-Mart's long-term strategy for the country.
Even though this could be an appointment scheduled earlier, the question that remains is whether Sonia Gandhi’s letter will really have any impact on the pending JV.