Summary Box: India about-face on foreign retail

AP News
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Posted: Dec 07, 2011 12:30 PM
Summary Box: India about-face on foreign retail

BACKTRACK: India suspended its plan to open its huge retail sector to foreign companies such as Wal-Mart Stores Inc. The reversal is seen as a major capitulation to political opponents that weakens the administration.

BUSINESS-FRIENDLY: The initial plan for foreign retailers signaled to business leaders that India was serious about economic reforms and welcomed foreign investment. Some economists said foreign retailers would bring better prices for farmers and lower prices for consumers.

SMALL STORE CULTURE: Opposition politicians opposed the entry of foreign retailers, saying the local mom-and-pop stores that are the heart of Indian retailing would have been crushed.