Walmart will be a speck in India's retail market: FM

Oct 15 2013, 01:08 IST
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SummaryThe US retail giant has been pitching for relaxing local sourcing norms under the foreign direct investment policy.

Walmart will be a ‘speck’ in India’s market and its absence won’t make a huge difference, finance minister P Chidambaram has said.

“Walmart will be a speck in India’s retail market. India’s retail market is driven by millions of standalone stores. India’s retail market has been strengthened by Indian retail chains. So why do we assume that Walmart will make a huge difference to India’s retail market?” he told CNBC-TV18 in an interview. He was replying to a question on whether Walmart’s move to part ways with joint venture partner Bharti Enterprises was a setback for the Indian retail sector.

The US retail giant has been pitching for relaxing local sourcing norms under the foreign direct investment policy for multi-brand retail. The Indian government has said there is no plan to relax the mandatory 30 per cent local sourcing norms for foreign players in the sector.

Meanwhile, commenting on the National Spot Exchange Limited (NSEL) crisis, Chidambaram said that its parent group Financial Technologies and another related entity MCX-SX are under watch and persons responsible for the alleged irregularities will have to pay the price. “There is no question of the government taking over NSEL. The government is concerned about the regulated entities, one of them is MCX which is a commodity exchange, other is MCX-SX and the other is the promoter of the MCX and MCX-SX, which is Financial Technologies. All three are under watch”, he said.

National Spot Exchange Limited, promoted by Jignesh Shah-led Financial Technologies, is facing a payment crisis of Rs 5,600 crore.

Shoring forex reserves to deal with US Fed’s tapering: Chidambaram

Washington: Finance minister P Chidambaram has said that India is shoring up its forex kitty to deal with the impact of US tapering and expressed confidence that growth will revive in the second half of the current fiscal.

“Tapering will start. I think (US Fed Chairman) Ben Bernanke hinted again that tapering will start. We are in fact prepared for tapering... we are preparing for tapering...So we are taking a number of steps to shore up foreign exchange reserves”, he told CNBC-TV18 in an interview.

The reversal of the easy money policy by the US is expected to impact the global markets as well as the economy. PTI

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