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4/7/14

India’s elections could be bad news for Walmart - by Heather Timmons

As voting kicks off in India, the reported front-runner Bharatiya Janata Party has released its policy “manifesto,” laying out how the BJP would try to reboot India’s stalled economy and help the country to recover what the party calls its “innate vitality.”

 While scant on specifics and long on content-free declarations like “We have to encourage our industry to innovate and collaborate internationally,” the 52-page document did provide some clues into which companies and industries might benefit if the BJP, as expected, gains the most seats in this election. 

There is one named exception to the BJP’s pro-foreign direct investment stance: “the multi-brand retail sector,” or stores that sell many different brands under one roof. That would reverse a decision by the current Congress Party-led government to allow multi-brand foreign retailers into the country. Walmart is reportedly investing 13 billion rupees ($214 million) in its India business, much of that for online sales. The BJP manifesto doesn’t specifically mention how it will handle e-commerce, and India’s growing online sales are sure to draw attention.

Seed makers like Monsanto and DuPont: “Genetically Modified (GM) foods will not be allowed without full scientific evaluation on its long-term effects on soil, production and biological impact on consumers,” the BJP states.
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Nuclear experts like GE: The US-India nuclear pact, a hallmark of the outgoing Manmohan Singh-led government, failed to create a massive new market for power plant companies in India, and the BJP promises even less bilateral cooperation. “We will follow a two-pronged independent nuclear programme, unencumbered by foreign pressure and influence, for civilian and military purposes, especially as nuclear power is a major contributor to India’s energy sector,” the manifesto says.

Read more: India’s elections could be bad news for Walmart - Quartz

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