James Fontanella-Khan of Financial Times spoke to CNBC-TV18 about the outlook on businesses in India after the bill on FDI in multi-brand retail got postponed. He says that the issue goes beyond just FDI in retail, and investors perceive it as uncertainty injected into the economy.
"If investors are not given a stable platform and clear directions of where the policies are going in this country, they will go elsewhere to invest. There are many other places around the world to invest in, and nobody wants to put money where the sky is cloudy," he says.
According to him, what is even more worrisome is, FDI in retail might not happen until the elections in 2014 and 'even then, BJP which is considered pro-business too cannot guarantee anything since they are against FDI in a crucial sector.'
Below is the edited transcript of the interview. Also watch the accompanying video.
Q: How big a setback has been the postponement of FDI in multi brand retail as far as India