In a desperate effort to reduce inflation the government is considering opening up the retail sector to foreign companies such as Walmart. Till today foreign companies are allowed to open stores which sell just one brand of product to retail customers. Companies such as Carrefour, which operates hypermarkets in other countries, is allowed to run, what is known as, cash and carry stores where they can sell only in bulk. Politicians fear that local grocers stores will be unable to compete with these giants who make profit on volumes by cutting margins. These companies bring down costs by sourcing directly from farmers and eliminating middle men thus bringing higher profits to farmers. Finally, one huge incentive for the government, which it does not want to advertise, is that local stores do not pay any tax so the government loses hundreds of billions of rupees every year. To pacify opponents ministers proposed that foreign companies will have to commit to buying at least 30% of goods locally but the commerce department thinks that this will be incompatible with WTO rules. TOI, August 29. India joined the General Agreement on Tariffs and Trade, GATT in 1948 which sought to lay down rules governing global trade. The Uruguay round was held in 1986 and in 1994 the WTO was agreed in Marrakesh. This treaty sought to liberalise trade and reduce non tariff barriers. India has been a member since the beginning on January 1, 1995. The General Agreement on Trade a Services came into force in 1994 which liberalised telecom. The World Famous Economist is credited with India's growth story by liberlising the economy. But was he? Or was he just following rules already laid down as a civil servant does? Perhaps a genuine scholar will enlighten us with a neutral review.