Ajay Shah has a detailed analysis of the regulations governing international investment by Indian mutual funds. His conclusion: “Small pieces of progress on economic policy in India seem to take a long time.” I entirely agree. There is a need to move much faster. Moreover the first thing that needs to be liberalized is access to global index products. The actual regulations appear to reflect not only the fear of a more open capital account, but also some degree of regulatory capture. Obstacles in the path of exchange traded funds serve to protect management fees in the fund management industry.