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What blocks Global Investment in India

March 22, 2010

Uddipan Mukherjee in Diplomatic Courier:

In this causally-connected neo-liberal world; any real-estate dilemma in Europe or the U.S. can make the Asian stock indices jittery. Similarly, any socio-political imbroglio in Asia or a coup d’etat in Africa may constrain the investment capacities of multinational corporations based in the West. Considering the immense potential as a consumer market, India can serve as a case study in this regard.

The insurgency fomented by Taliban and Al-Qaeda in Afghanistan and Pakistan has proved detrimental to the growth of these nation-states with foreign investment dipping abysmally due to the precarious security conditions. The chain of insurgency aperiodically spills over to neighboring India in the form of cross-border terrorism. Ironically, India at present finds itself endangered more due to the leftist insurgency rather than the former; as far as global investment is concerned.

The Maoist menace of 1967 is haunting India yet again and consequentially the world too. At that juncture, the movement was temporarily curbed by the state apparatus. [More]

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