Foreign direct investment (FDI) in several sectors in India is still heavily regulated. After much debate, the government of India recently relaxed restrictions on FDI in the retail sector. For purported reasons like national security and possible job losses, many sectors of the economy such as defense, nuclear power, and oil refining are not fully open to foreign direct investment. Suppose you are hired to serve on the government’s Working Group on Foreign Direct Investment. What would you suggest to the government?

Defend your position.