NEW DELHI - India on Wednesday suspended its plan to open its huge retail sector to foreign companies such as Wal-Mart in a reversal seen as a major capitulation to political opponents that further weakens the administration.
The business community had hailed the initial decision to let foreign firms own a majority stake in retailers here just two weeks ago, and the government and some economists said foreign retailers would bring better prices for farmers and lower prices for consumers.
But opposition parties and even some members of the governing coalition protested, saying the local mom-and-pop stores that are the heart of Indian retailing would be crushed. Opposition lawmakers disrupted Parliament for days in protest.
Indian government backtracks, suspends plan to let in foreign big-box retailers like Wal-Mart
