India

Bowing to pressure from its communist coalition partners, the Indian government on August 17 called off plans to sell its stake in 13 firms, including aluminium producer NALCO, oil refinery HPCL, Engineers India Limited, Shipping Corporation of India and Rashtriya Chemicals and Fertilisers. The Leftist parties, whose 61 legislators prop up the Congress government, have threatened the government over a host of reforms in foreign investment and the banking sector since they came to power in the May 2004 general election. The Left parties have also opposed raising the 26% foreign investment cap in private insurance companies as increased competition

To read the full article, please choose one of the following options: