FDI in retail will help curb inflation: Wal-Mart

Wal-Mart Stores Inc chief executive officer Michael T Duke said he is ''optimistic'' that overseas companies will be allowed to invest in India's retail industry.

Pitching for 100 per cent foreign direct investment (FDI) in the Indian retail sector, he said at a press conference in New Delhi on Monday that such a move will help contain inflation.

"This will also enable Wal-Mart to increase sourcing of products from India by developing more vendors here," Duke said. "Hundred per cent FDI would be the solution for all constituents and stakeholders in the retail sector." At the same time, he maintained that the retail giant respects India's calibrated approach towards opening up the sector.

Duke met commerce and industry minister Anand Sharma in the capital and discussed the issue of FDI in light of a government proposal to open multi-brand retail to foreign investment. However, Sharma said that no Duke made no demand for opening up the sector. "What I have mentioned in the meeting is that as a democracy, we believe in generating a discussion and consultation with all the stakeholders so that before taking any step, we create a broad-based consensus," Sharma said.

When asked if he expected some concrete developments in opening up the sector further to FDI, coinciding with US President Barack Obama's visit to India next month, he said: "I cannot comment on that ... it is not really my position to set the position of the Indian government."

India does not allow FDI in multi-brand retail sector, which is dominated by small 'kirana' shops. The sector employs 33 million people. However, 100 per cent FDI is allowed in the wholesale segment and 51 per cent in single-brand retailing.