India’s retail reforms put on hold

Shares in Indian retailer Pantaloon slumped by their biggest one-day percentage drop in almost a decade on Monday, and business leaders rounded on the government after Prime Minister Manmohan Singh put on hold a landmark reform of the country’s $450-billion retail industry.

Postponing the reforms – which some claim will destroy the livelihood of millions of small shop owners – is embarrassing for a government that has failed to pass any big-ticket economic reforms as it battles corruption allegations and a limp economy.

The policy shift, that would allow big foreign chains such as Wal-Mart Stores Inc., Tesco and Carrefour to own a majority stake in supermarket operations, has been shelved until Mr. Singh can build a consensus behind it.