Some kind of foreign investment law is needed

India introduced financial reforms in 1991 and although the reforms were revolutionary in nature, the government was hesitant in opening up all the sectors to foreign investors. As a result, the reforms were half-hearted. After two decades of the reforms, the scene is changing. A major section of the Indian economy is now open to the foreign investors. At the same time, there are sectors where the permissible percentage of FDI is way below the sufficient level. Prominent among these sectors are insurance, retail, banking and defence. While retail has a 51% cap in single brand outlet, in insurance, defence ...

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