Sonia doesn't want to be linked with Wal-Mart

UPA chairperson and Congress president Mrs Sonia Gandhi decided to stay away from the visiting Wal-Mart top boss Michael Duke.

NEW DELHI: UPA chairperson and Congress president Mrs Sonia Gandhi decided to stay away from the visiting Wal-Mart top boss Michael Duke. It seems Mr Duke had sought an appointment with Mrs Gandhi, which was denied.

Even as a source from Congress President’s office said the appointment was not given as it was sought on “too short a notice,’’ observers clearly see this as a deliberate move by Mrs Gandhi not to be linked with Wal-Mart in any way. Only last month, Mrs Gandhi had written to the PM asking him to study the possible impact of transnational supermarkets on small retailers.

It is possible that the Left parties’ constant campaign against the world’s biggest retailer, may have persuaded her to give the Wal-Mart honcho a cold shoulder. But sources in the Congress Party say this is not the only reason. The Congress is still gauging how the lakhs of small retailer react to the entry of foreign chains such as Wal-Mart and Tesco, and does not want to be seen to be cosying up to them.

Of course, a more charitable explanation for Mrs Gandhi’s refusal to meet Mr Duke is that she has too many pre-occupations ahead of the crucial UP assembly election and therefore genuinely does not have time.

It’s learnt that Wal-Mart only wanted to make a courtesy call to Mrs Gandhi. It did not want to discuss strategy or plans for India. “It was an attempt at relationship building,’’ a source said.

Wal-Mart knows far too well that if it has to operate in such a consumer-centric sector as retail, it cannot afford to face hostility from some sections of the Indian polity. It also knows the importance of small Kirana shop owners for political leaders as a potential votebank.
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Successive top bosses of the US company have repeatedly visited policy makers in the country, lobbying hard for issues such as FDI in retail. In June 2005, the then CEO of Wal-Mart International, John Menzer, met the Prime Minister and Industry and Commerce Minister Kamal Nath.

Subsequently, in March last year, after taking charge as the CEO, Wal-Mart International, Mr Duke came to India and met prominent government officials.

mayur.jha@timesgroup.com
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