Foreign investment under spotlight as Indian election approaches

India's railways are likely to become more open to overseas investors (photo: dpa)
India's railways are likely to become more open to overseas investors (photo: dpa)

This year’s elections will give foreign companies an indication of whether India will be politically able to allow them larger stakes in the country. Potential investors should reasonably expect to see greater opening up in five sectors – banking, insurance, defence, railways and retail/e-commerce. What these overseas businesses really need is the emergence of a strong leader with the authority to take on the political risks that these reforms will engender.

<em>India’s forthcoming national elections have raised the prospect of the country liberalising its policies towards foreign direct investment. Based on the policies of the present Manmohan Singh government and the policy de...

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