QUO VADIS, INDIA II: FRAGILE POLITICAL ENVIRONMENT AND DARKENING INVESTMENT CLIMATE
WRITTEN BY OLIVER HERZOG & DORJE WULF – QUO VADIS, INDIA SERIES 2/4
Despite the many structural problems in India’s economy, urgently needed reforms in terms of economic liberalization, budget consolidation and government effectiveness seem to have been put on hold recently. In addition, erratic political decision-making has contributed to an unpredictable investment environment.
India’s fragmented political landscape continues to slow down decision making.
During recent regional elections, a string of corruption scandals have led to massive losses for the parties of the established ruling coalition.
Several renowned companies (foreign as well as domestic) have been alienated by unfavorable intellectual property jurisdiction, non-transparent political decision making and unpredictable turns in tax policies.