Analysis: Investment Flight
New Delhi, India (DPA) - India is in danger of losing its reputation as a preferred business destination after a recent flight of foreign investments, as it struggles to recover from its worst slowdown in more than a decade.
Asia's third-largest economy desperately needs foreign capital to revive growth, but it has been jolted by the pullout of two of its biggest investors in recent weeks.
Steel giants ArcelorMittal and Posco recently scrapped projects totalling more than 13 billion dollars, citing inordinate delays in securing land or mining rights due to local protests.
Global investment flows have fallen sharply over the past year, due to macroeconomic fragility and the policy uncertainty faced by investors.
The world's biggest emerging economies - Brazil, Russia, India, and China - have been most affected but India appears hardest hit, as investors find it a tough place to do business.
Once bullish about India, investors complain of red tape, delays in permits, and regulatory uncertainty which they say render their projects unviable.
National Planning Commission member Arun Maira concedes that an unfriendly business environment, rising interest rates and input costs, along with a weakening rupee, are hurting invesment. …