more-arw search

India Abandons Plans to Welcome Foreign Retailers

India will remain closed to the likes of Walmart for the foreseeable future.

A proposal to open India's borders to the like of multinational retailers Walmart and Tesco has been suspended, and the development will have effects on the country's government as well as the global economy.

The Telegraph reports that an attempt to bring big-name corporations to India had the wide support of international business leaders, and noted that the "U-turn" threatens the progress of other reforms in the country. Foreign supermarket chains would have brought much-needed investments to the country's "backward and underfunded agricultural sector," the news source remarks.

"India will lose a lot of credibility with foreign investors. It is a sign that the government is not taking a serious stand on reforms and will lead to a slowdown in investment. People will be unsure of its direction," Gokul Patnaik, a former civil servant and supporter of bringing Pepsi to the country in 1990, told the Telegraph.

The New York Times reports, however, that single-brand stores such as Ikea may be allowed to operate in India in the future.

In a blog for the Times, Jim Yardley wonders if the entire debacle was just political posturing by Congress party leaders, who wanted to create a distraction and bypass a parliamentary debate about the anti-corruption organization Lokpal.
 

Comments

Topic Expert
Barrett Peterson
Title: Senior Manager, Actg Stnds & Analysis
Company: TTX
(Senior Manager, Actg Stnds & Analysis, TTX) |

India has clearly shown, again, they are not capable of developing a serious economic standing. They have well earned their failure. Invest elsewhere.

Topics: