'Foreign investors waiting for elections to decide on India'

Bulk of foreign investors will wait for the general elections before taking any decision on investment in India, a survey by industry body Assocham today said.

"Potential investors would like to wait and watch till the general elections, owing to uncertainty about the unfolding political direction," it said in a statement.

Majority of the respondents of the survey stated that investors have put their investment plans on hold for now. About 1,200 corporate executives participated in the survey.

The Lok Sabha elections are expected to be held in May.

Citing example of multi-brand retail trading, it said that global retailers like Walmart and Carrefour are unlikely to enter the supermarket business in India before the 2014 general elections.
 

"In the case of multi-brand retail, the concerns are there regarding the political stand of state governments. Most of the states have expressed their opposition to the FDI policy, except the congress-ruled states," it added.

The Delhi government's has recently announced its decision to withdraw permission for FDI in retail.

The survey said that the industry requires a big push from the new government.

"Only a stable government will be able to come out with a credible blueprint," it added.