| The US sanctions are potentially the
most threatening. Besides aid cuts, they can directly affect investment as US government
agencies can block $14 billion in pending loans and guarantees to US companies investing
in India. The Indian Government's approach is
already to pressure US companies to lobby their own government for not imposing sanctions.
US companies have expressed the opinion that if the US is
the only major country imposing trade sanctions, it may backfire, as these companies will
lose out to competitors.
The Indian Government is adopting a similar stand with all
foreign investors, trying to woo them with the lure of core projects, easier investment,
and market access. |
