Global retail giants push their India plans to next year

International multi-brand retail chains, which were

expected to enter India after the government cleared 51 per cent FDI in multi-brand retail, seem to have shelved their India plans till 2013. Experts say, foreign players would take critical business decisions only next year. The Opposition’s call for a discussion and perhaps voting in Parliament on the issue of retail FDI in the winter session is said to have cautioned international companies about making plans, which also includes companies present in India across other retail formats and those weighing the option of entering the country. The fact that the world’s largest retail chain, Wal-Mart, has admitted inquiries or investigations into corrupt practices in many countries including India has further complicated matters for the sector. In a separate development, the Enforcement Directorate is investigating an investment by the US chain in Bharti group to scrutinise alleged Foreign Exchange Management Act (Fema) violations.

In a statement, Wal-Mart has said the group began conducting a worldwide review of its policies, practices and internal controls for FCPA (Foreign Corrupt Practices Act) compliance in March 2011.