Corruption in India is scaring away investors as foreign direct investment (FDI) fell 30 percent to about US$24 billion in 2010, reports Channel News Asia, citing the United Nations Conference on Trade and Development.
In contrast, investments to other emerging economies rebounded after a fall in 2009. Foreign direct investment to China rose 11 percent while FDI to Southeast Asia grew 110 percent.
"There's quite a big concern about the corruption scandals that are going on in India," says IHS Global Insight Asia Pacific chief economist Rajiv Biswas. "In fact, corruption could be more detrimental to India's economy than the uncertainty in world markets right now, because of its relatively low dependence on exports."
MORE ARTICLES ON FOREIGN DIRECT INVESTMENT