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August 01, 2014 AT 1:50 PM
India's Prime Minister Narendra Modi came to office with a reputation as a business-friendly leader ready to open up one of the world's biggest markets and sweep away the remnants of the country's socialist past. Now potential investors, some of them foreign firms hoping to exploit new opportunities in India's vast consumer market, are scratching their heads after Modi's party walked away from a major deal to reform customs rules and make global trade easier. India shocked trade officials by rejecting the agreement at the 160-member World Trade Organization, one of the group's biggest initiatives since it was set up 19 years ago.