Opposition to Wal-Mart's India entry

There have been political protests in India over the tie up between US retail giant Wal-Mart and Indian telecom to retail conglomerate Bharti. The Commerce and Industry Minister has told the Indian media that he will be reviewing the agreement.

The government favours foreign investment in the logistics and supply chains but also wants to consider the impact of this back-door entry by Wal-Mart into India's lucrative middle class market on local farmers and small shopkeepers.

Under the deal Bharti will be in charge of the retail side of the joint venture with several hundred stores planned while Wal-Mart handles the supply chain, logistics and other back-end operations. A new brand name for the shops is under consideration.

Current Indian investment rules bar multinationals from taking a controlling interest in multi-brand retailing.

India's two communist parties have come out against the deal - partly influenced by Wal-Mart's record in the United States and elsewhere and human rights and child labour abuses. The All India Democratic Women's Association opposes the venture because of the impact the big multinationals could have on small retailers.

It's thought that as many as 60 million Indians currently work in retail, many of them in small family run establishments.

The ruling UPA government in India is dominated by the Congress Party but depends for Parliamentary support on the votes of the communist parties and smaller regional parties.