BY RUISHA QIAN

India is officially off limits for foreign retailers, including Walmart.   KMGH reports...

“The government there has suspended plans to open its huge retail sector to foreign companies like Walmart. In the beginning, the idea of bringing in foreign business was hailed by businesses and residents as a way to bring lower prices for customers. But many believed it also would crush local mom-and-pop stores and that sentiment eventually won.”

Supporters of foreign investment say it will catalyze much-needed economic reform in India. Al Jazeera says new retailers could upgrade India’s industry...

“The government says foreign investment and retail would help support a weak Indian Rupee, reduce inflation and create jobs. It says it would also bring better prices farmers and lower prices for consumers.”

But The Wall Street Journal explains where the opposition comes from...

“ ... India's retail debate is not about who will sell the goods to consumers. It's about who will bring those goods to market, and how. The difference between so-called organized retail and the traditional kind is how products get from farm to kitchen. The biggest losers from investment liberalization would be the middlemen who currently do today's organizing of Indian retail—and do it badly.”

And the decision has support from traders. An official from the Confederation of All India Traders tells the Washington Post...

“In a democracy, the government has to listen to the voices of the people. It cannot bring in foreign companies and ignore the demands of Indian people... [The move] shows the government has a big heart and will not kick our stomachs and snatch away our livelihoods.”

The Los Angeles Times says 180 indicates the Indian government’s weakness.

“The turnaround is the latest sign of weak leadership and a lack of direction by India's Congress Party-led government, which is beset by corruption scandals, an increasingly ineffective prime minister and rebellious allies.”

Finally, an economist tells Bloomberg the move may have something to do with next year’s election...

“Facing at least five regional elections next year ... the government may refrain from taking controversial decisions in the run up to the contests ... The U-turn on retail may allow the government to pass legislation this parliamentary session that will create a new anti-graft agency with enhanced powers.”