In a meeting with the chiefs of global retail chains Wal-Mart and the Metro Group at the World Economic Forum (WEF) in Davos, Commerce and Industry Minister Anand Sharma said, “It (51 per cent FDI in multi-brand retail) could not be implemented because of the compulsions of coalition politics as also partisan opposition... It is just a pause. The decision has only been put on a temporary halt.” He added that consultations have been restarted with all stakeholders and only bonafide objections would be taken into account.

Frans WH Muller, member of the management board of Germany-based Metro Group said, “If retail FDI happens, it would be good for the entire trade, and the Indian government seems to be confident about that”.

In a meeting with Sharma, Walmart International president Doug McMillon said Walmart will abide by all the proposed riders in the FDI policy for multi-brand retail segment in India. McMillon also “conveyed his commitment to invest in Indian market as and when FDI in multi-brand is allowed”, an official statement said.

Wal-Mart is operating in India through a joint venture with Bharti Enterprises. The firm has 14 stores in India with best price wholesale cash-and-carry stores in Ludhiana, Bhopal, Zirakpur, Amritsar, Jalandhar, Kota, Raipur and Indore.

Wal-Mart emphasised that it will comply with the conditionalities to promote rural economy, employment and back-end investment in India.

Sharma also met Frans Muller of retail chain Metro who discussed the company’s plans to double its investment and stores in cash-and-carry in India.

It plans to invest over 100 million euros in India as part of strategy to spread its footprint across the country. At present, it has nine stores in locations including Bangalore, Hyderabad, Kolkata, Mumbai, Jalandhar and Ludhiana.