Singh Push to Revive Wal-Mart Entry Plan Hit by Fresh Opposition

The ruling party of India’s most populous state and communist groups advised Prime Minister Manmohan Singh against reviving plans to allow overseas companies to open supermarkets, a move already opposed by a key government ally. Shares of local retailers fell.

Six parties, including the Samajwadi Party that governs Uttar Pradesh state and the Communist Party of India (Marxist), said in a letter to Singh that allowing foreign direct investment in multibrand retail would trigger job losses. In June, Samajwadi leader Akhilesh Yadav had said the party could back the policy change as long as the interests of small farmers were protected.