Policy instability reigns

Investors will see government action as primary risk

The government has sought to make India an easier place to do business, and has pushed for reform to this end at both the central and state levels. Some of its efforts have been crowned with success, and India’s ranking in the World Bank’s ease of doing business rating has risen. The hope is that this will revive investment, both domestic and foreign. But the question to be asked is why investors would want to come in to India at the risk of catastrophic capital loss, and when the greatest risk continues to be the Indian state itself. One major