(FE)
While it is always possible the government may be tempted to push some populist measures in what is its last budget before next year’s general elections, the signs so far are encouraging. Though no move was made on liberalising rules for FDI in either multi-brand or food retail, significant changes were made for single-brand retail including 100% FDI through automatic approval and more relaxed local-sourcing norms. Other decisions on FDI in townships also fall in this category. The fact that the prime minister is going to Davos with a big contingent also suggests that some more reform may be in the offing. The finance minister has, in any case, said the banking recapitalisation will be accompanied by sweeping reforms.
