The Washington Post reports that the Indian government has “suspended a plan to allow foreign supermarket chains such as Wal-Mart and Britain’s Tesco to operate in its burgeoning retail market,” a shift that would have allowed such companies to own majority interests in chains operating there.
“The announcement is expected not only to deter foreign investment in Asia’s third largest economy but also to further weaken the image of a government already under fire for its inability to follow through on tough policy revisions aimed at boosting growth,” the Post writes.
The current government had announced that it would allow foreign retailers to own the majority of shares in supermarket chains operating in India, but was met with “fierce opposition” from a number of political quarters - including some that threatened to burn down stores owned by foreign companies - that were concerned that it would do harm to millions of small retailers throughout the country.
“The announcement is expected not only to deter foreign investment in Asia’s third largest economy but also to further weaken the image of a government already under fire for its inability to follow through on tough policy revisions aimed at boosting growth,” the Post writes.
The current government had announced that it would allow foreign retailers to own the majority of shares in supermarket chains operating in India, but was met with “fierce opposition” from a number of political quarters - including some that threatened to burn down stores owned by foreign companies - that were concerned that it would do harm to millions of small retailers throughout the country.
- KC's View:
- That didn’t last long.
