Facing a harsh political reaction that has paralyzed the Indian Parliament, the governing Congress Party announced Wednesday that it would suspend plans to allow major foreign retailers like Wal-Mart and Ikea to open stores in India.
The decision, announced in Parliament, was a setback for Prime Minister Manmohan Singh and seemed certain to deepen criticism that his administration had become increasingly adrift and ineffective. Foreign corporations eager to enter the Indian retail market must now also put aside any expansion plans.
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