Easing FDI restrictions are a small step in the right direction

The decision this week to lift restrictions on FDI into the construction sector is another indication of the government’s willingness to address India’s investment needs. But even so, there is still a disappointing lack of progress in liberalising larger sectors, such as retail. What’s more, loosening restrictions needs to be complemented by wider-ranging reform in order to encourage FDI, but progress in some of these areas has so far been underwhelming.