Wal-Mart puts India plan on hold

Wal-Mart Stores Inc. (NYSE: WMT) ended its Indian joint venture on Wednesday and has put plans to open its own retail stores in the country on hold, saying strict government regulations on sourcing from local small businesses make it impossible, the New York Times reports.

According to the article, the Indian government changed its laws last year in an effort to allow more foreign companies to invest in the $400 billion sector previously reserved for Indian companies. However, no large foreign chains have applied to open retail stores in the county, despite India's untapped population of 1.2 billion.

The new law requires foreign retailers buy 30 percent of products from local small and medium-size businesses.The world's largest retailer already runs another joint venture in the county and plans to buy out wholesale partner Bharti Enterprises.

Read more at the New York Times.