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January 29, 2006
I knew it

Not content with trying to bully India over their vote on Iran's nuclear program, we're also trying to strong-arm them into opening their doors to Wal-Mart.

The cabinet Tuesday approved major reforms in foreign investment, including opening its retail market the world’s eighth largest and estimated at 250 billion dollars to single brand outlets such as shoemakers Nike and Reebok.

The left parties, which have 61 MPs in a 545-member parliament and whose support is vital to the coalition government, opposed the move, saying it will hit small stores which dominate the Indian retail market.

Mulford questioned their reasoning.

“I recognise there are complicated problems there because of the innate structure of your current small sector. But ... large retailers and small shopkeepers can co-exist perfectly well,” Mulford told PTI.

The diplomat said the move will not only benefit US companies but also the Indian economy.

“Large-scale retailers would come into India and build backwards the infrastructure all the way out to the farm that’s required to improve the efficiency of India’s agricultural sector.”

Suuure they would. Just ask any small-town shopkeeper in the USofA whose seen a superstore move into their area. If you can find one who hasn't been "coexisted" out of existence.

Or ask any local farmers in an area where some USofA superstore has moved in a grocery-drug-clothing-toys megamart. Oh. Wait. Those superstores don't buy local produce, do they?

The envoy welcomed the government’s decision to allow 51 percent foreign investment in the retail sector but said it needed to do more than just allow single-brand outlets to set up shop.

Doesn't surprise me. Considering how little of the product of those single-bands is actually made in the USofA, not much profit would be reaped back on home shores.

“US retailers should be able to come into India and do the full range of retail business.”

He also said the government should change investment caps in the insurance sector and the existing limitations on foreign banks expanding in India.

Because you don't really control a country until you control the flow of money.

Posted by AnneZook at 09:08 AM