India on Tuesday abandoned plans to sell stakes in state-run companies to strategic investors, bowing to opposition from leftist allies who fear massive job losses and dealing a blow to reforms. The slow pace of reforms has raised concerns about the future of foreign investment in India, which is already trailing China.
The communist-backed government called off plans to sell its stake in 13 firms, including aluminium maker NALCO, oil refiner HPCL, Engineers India Ltd., Shipping Corporation of India, National Fertilisers Ltd. and Rashtriya Chemicals and Fertiliser.
China on Wednesday freed more than 1,300 largely state-owned companies to gradually sell shares of stock now controlled by the Communist Party government, putting nearly $270 billion worth of state assets on the trading block. This unprecedented wave of privatization is aimed at lifting domestic stock markets and furthering the country’s transition toward capitalism.