Help us end the fiscal year strong. Donate by June 30. Give Now

Walmart faces illegal investment accusations in India

Marketplace Contributor Oct 19, 2012

Retail giant Wal-Mart is under fire in India for allegedly investing in a chain of Indian supermarkets despite a ban on foreign direct investment in that sector.

The accusation, leveled by a lawmaker representing the southern state of Kerala, follows a decision by the Indian government to open the wholesale retail sector to foreign investment. However, the plan does not include supermarkets. Wal-Mart denies the allegation, saying it respects Indian law. Though an inquiry is underway, no formal investigation has been launched.

All of this comes as the pace of economic growth in India continues to cool off, highlighting tensions among local businesses, foreign firms, and the Indian goverment.

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.