Foreign investors are queuing at India's door to take a stake in what is widely seen as one of the world's last great growth markets. Chief executives of a string of multinationals have been trooping through the leading Indian cities this year to see for themselves what the excitement is all about. Several have held full board meetings on site. Global retailers such as Wal-Mart, Tesco and Carrefour are clamouring to be allowed into a vast consumer market serviced almost entirely by mom-and-pop shops. But the entry door is proving awfully sticky to open.

The Indian government was presented yesterday with a plan for a further big liberalisation of foreign direct investment rules and promptly sent it back to a panel of ministers for further consideration. It was a typical Indian delaying tactic, frustrating reformers and confirming that powerful political lobbies are still instinctively opposed to rapid opening of the economy.