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Deepak Lalwani From Precy Dumlao, Opalesque Asia:

Foreign investors are starting to lose their early enthusiasm for India because of political paralysis and corruption scandal in the government, according to the latest India Report prepared by London-based Lalcap.

According to Lalcap director, Deepak Lalwani, it is virtually impossible to make bold and tough much needed reform in the country’s political system because of the region’s coalition politics and parliamentary system with a maximum five-year term in office.

Apparently, the system creates a problem in the continuity of policies if ever the coalition government is not re-elected.

Lalwani said in the report, "Coalition politics has now existed for 15 years+. To achieve long term gains (through tough and bold reforms which are essential for the country) is proving very difficult in a parliamentary democracy like India. This is because short-term pain for the common man causes problems for politicians affected by their vote banks. Especially in a country where no proper social security system exists and fears of potential job losses cause vociferous protests."

Ironically, Lalwani’s report directly contradicts the data released by the nation’s market watchdog, Securities and Exchange Board of India (SEBI), in September which said that foreign institutional inv......................

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