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India should not push its oil market liberalization too far

It is unwise to give foreign companies easy entry into fuel retailing

| India
India's oil use is expected to double over the next two decades.   © Reuters

Prime Minister Narendra Modi's government, in its pursuit of economic reforms, is looking to remove the entry barriers for foreign companies to sell transportation fuels in India's lucrative market. This may be a step too far -- and possibly even detrimental to the domestic oil refiners and marketers.

India's advantage in attracting foreign companies lies in being able to exchange coveted access to its fast-growing consumer numbers for the investment it seeks in a variety of infrastructure projects across the vast country -- a trade-off international companies are accustomed to.

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