India Halts Wal-Mart Entry Amid Protests

Prime Minister Manmohan Singh’s government could not overcome fear and opposition that modern big-box stores from the west would overwhelm the country’s small family-run stores – and suspended plans to let foreign retailers open stores in India. The change in plans reflects an inability to boost foreign investment and end policy paralysis, reports an article from Bloomberg. “In an attempt to kick start an economy that expanded at the slowest pace in two years in the quarter ended Sept. 30, Singh had approved overseas companies … to own as much as 51 percent of retailers selling more than one brand, adding riders to benefit the local economy,” Bloomberg reports. Corporate executives complain that the political infighting adds uncertainty to India’s business climate. Analysts anticipate that politicians facing elections in the upcoming year will refrain from any controversial legislation or genuine efforts to tackle problems that aren’t going away on their own. – YaleGlobal