American investors are adopting a "wait and see" approach on India ahead of 2019 Lok Sabha elections, says Nisha Desai Biswal, the president of the US-India Business Council at the US Chamber of Commerce.
In an interview to CNBC-TV18, Biswal said, "We saw a big surge in foreign direct investment (FDI) during the initial years of the Narendra Modi administration. Prime Minister came in with a huge backing of a global community that was looking for an India on the rise and we have seen enormous growth in India over the last several years, with India being the fastest growing large economy consistently over the last several quarters."
"The ecommerce policy and the changes that were announced earlier this year were a shock to the system particularly when there had been a very robust investment into the sector. The policy changes created a little bit of uncertainty and unpredictability on whether there would be transparent, predictable policies that companies and investors could bank on or whether there would be abrupt shifts. I do think that there is some expectation that in a post-election climate this should stabilise and there should be kind of a resumption of a more consultative process on a host of other policy areas," she added.