US retail giant Wal-Mart has asked for support from the US government in entering Indian retail market, where strict laws on foreign direct investment are hampering their progress.
The company is lobbying the Indian government to assist its expansion in the country and bilateral trade talks between both governments are possible, India's Economic Times has reported.
Because India does not allow foreign direct investment in multi-brand retail businesses, such as hypermarkets or supermarkets, Wal-Mart's presence in the country is limited to wholesale endeavours in its joint venture with the Bharti Group.
The Economic Times reported that lobbying disclosure statements filed by the company with the US Senate said Wal-Mart has spent US$11m on its Indian business interests over the past two years.
There have been rumours recently that India could relax their foreign ownership laws in retail, and top Wal-Mart officials have gone on the record as declaring India as very important for its long term growth.
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