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News Summary: Wal-Mart splits from India partner

The Associated Press

HITTING PAUSE: Wal-Mart Stores is splitting from its Indian business partner and won't open its own stores in India because of a new law that requires foreign retailers to source nearly a third of their merchandise from local small businesses.

THE BACKGROUND: India now allows international companies to open multibrand retail stores with 51 percent ownership and an Indian minority partner. Foreign companies can operate 100 percent-owned wholesale chains, but few foreign companies have formally applied to open stores since the law passed last year.

THE OTHER SIDE: Opponents of the law say opening the door to foreign retailers could ruin millions of small traders and family-run shops where most Indians now buy their goods.