Nevertheless, political factors have slowed the process somewhat. To sustain the impetus, the government will need to open the economy to further competition. India's dirigiste path of economic development has meant that public sector enterprises are dominant in most industries. Since 1991, minority equity sales have occurred in only 40 of the 240 central public enterprises. It also announced plans to reduce public equity in non-strategic industries to 26 percent, marking significant progress from previous government efforts.
Plans regarding the many loss-making public enterprises are unclear.
Ultimately, the treatment of foreign investment at the central level varies by sector, with foreign investment in infrastructure being especially welcome. At the state level, foreign investment is being more aggressively pursued. The state of Andhra Pradesh has taken the lead in attracting such investment. The government appears committed to private-sector led reform in the infrastructure sector, particularly in power and roads. The government appears keen to the private sector, whose involvement has been limited by the poor financial condition of the SEBs.