Wal-Mart spent USD 25 million on lobbying to enter non-US markets
American retail giant, Wal-Mart has noted in its own report that it has spent about USD 25 million during a period of four years to lobby for gaining an entry into non-US markets including India.
Major opposition parties like the BJP have demand investigations into the matter and the government has also initiated probe into where the money was spent in India. Some point out that the report by the retailer is an appreciable move and that lobbying is a common diplomatic practice around the world.
Wal-Mart has dismissed suggestions that it is involved in illegal lobbying for entering Indian market and said that it will fully cooperate with the investigations in the country.
The company said that it will provide relevant information to the Indian authorities for assisting in the judicial investigations into allegations that the company lobbied in the US regarding India's multi-brand retail sector. A company spokesperson said that the company is ready to hand over the required information for the probe in India.
The invitations were announced after India's main opposition party, Bharatiya Janata Party (BJP) demanded a probe into the allegations that Wal-Mart lobbied to enter the Indian market. The timing of the incidence is unfortunate for the company as the Indian policy makers just allowed foreign firms to enter the Indian market amid intense opposition from various circles.
Indian parliament recently approved government's decision to allow 51 per cent FDI in multi-brand retail in the country allowing global retail giants like Wal-Mark to inter the Indian market.