With powerful regional bosses blocking the entry of foreign supermarket chains into India, US secretary of state Hillary Clinton is expected to make a pitch to win over the most vocal critic, West Bengal chief minister Mamata Banerjee, when the two meet in Kolkata early next week.
Ms Clinton will hold talks Ms Banerjee on May 7 at the start of her three-day India visit, and a close Mamata aide confirmed the two “could possibly discuss FDI in Bengal”, but refused to say more about the agenda of the meeting. Sources said the cash-strapped West Bengal leader might also explore options for American investments. “We don’t know if multi-brand retail will be discussed. But FDI for the state is likely to be on the agenda,” a Trinamul leader said.
Asked if the state government was exploring any formula to allow foreign chains like Wal-Mart to open shop, the Trinamul leader said: “Didi is not discussing the issue (now)... Maybe after the meeting.”
Ms Clinton’s delegation is expected to include some senior representatives of American companies, and the secretary of state is also likely to meet Indian industry leaders while she is in the country.
It may be recalled the US government had been lobbying the Manmohan Singh government and its predecessors for years to allow FDI in multi-brand retail, as it is of major interest to American companies. Ms Banerjee is one of the strongest critics of such a move, and virtually forced the Centre to reverse its decision on this late last year.
Some Trinamul leaders said, however, that Ms Banerjee, given her pro-poor image, cannot drop her opposition as this will “give a handle to the Left, who could turn this into a major political issue”.