November 29, 2008

India’s financial future cloudy

Analysts say the terrorist siege near the financial district of Mumbai may scare off foreign investors in India, at least in the short run.

India's economy had already slowed, due to a decline in the rupee and the global credit crisis, The New York Times reported Saturday. The Sensex -- India's leading stock market index -- has been cut in half since January.

At least 195 people died in this week's attacks in Mumbai, where foreigners were targeted at two of India's most expensive hotels, the Taj and the Oberoi and other sites.

I would not feel comfortable either staying in or going to meetings at the Taj or the Oberoi, at least in the near future, said Joel Perlman, the president of Copal Partners, a research company.

Since January 2004, more people have died in terrorist attacks in India than any other country except Iraq, said the Hong Kong-based Political and Economic Risk Consultancy.