In brief
India suspends opening of markets
International retail giants that want to expand into India will have to wait some more. The government in New Delhi suspended its plan to open up the retail sector to foreign investors because it lacked political support. In December, Finance Minister Pranab Mukherjee said that the reform would be deferred “until the major political parties have found a compromise”. The parties in the ruling coalition are split on the matter.
Foreign investors have been waiting 15 years for market entry in the world’s second most populous country. The government intended to allow foreign investors to buy up to 51 % of supermarket businesses. In the capital New Delhi and elsewhere, apprehension about corporations like Wal-Mart or Carrefour caused an outrage and lead to street protests. (ph)
