Did Wal-Mart India’s Red Light Just Turn Green?
In a strange turn of events, it now looks like Wal-Mart (NYSE:WMT) may soon be awarded a go-ahead for its India plans, even though just earlier this week, the country was still stopping the U.S. retail giant at an indefinite red light.
But according to a Wall Street Journal report published Friday, Wal-Mart is now preparing a formal proposal that it will soon submit to the Indian Trade Ministry for rights to operate supermarkets in the country. This information was corroborated by Scott Price, Wal-Mart’s Asia CEO, who was present for the meeting with officials at the Department of Industrial Policy and Promotion, the Journal reports.
A prepared formal proposal reflects a significant step forward for Wal-Mart, which has long fought to establish an increased presence in India’s lucrative retail market. In 2007, it teamed up with Bharti Enterprises, an Indian conglomerate, in order to meet India’s strict policies that keep foreign retailers from holding more than 51 percent foreign direct investment.