Foreign companies are slowly leaving India

Foreign investment is something nearly every government aims to increase. It helps drive the investment driven growth of the country. But boosting this kind of investment is tough. The government has to instill the confidence in foreign companies that their investment interests would be safe. Unfortunately in recent times India seems to be doing exactly the opposite. The government is doing everything in its power to kill foreign investor confidence rather than boosting it. Therefore, it would not come as a surprise that foreign companies are actually exiting India.  The latest to join the list is Germany's Fraport, the world's second largest airport operator. Earlier telecom carriers Etisalat and Bahrain Telecommunications had decided to exit their businesses in India. The reasons for their negative sentiment are the government's policy paralysis and regulatory uncertainty. Add to this the spate of scams and slowing economic growth and the foreign companies are seeing little reason to stick around.  The government needs to do something about this. And do something soon. Otherwise the much needed foreign capital is going to leave India and find its way in to other developing markets.