OPEN FOR BUSINESS

Global Finance, Sep 2004 by Chaze, Aaron

Political analysts and fund managers are unanimous that under the country's new political masters, maintaining law and order will be a paramount concern and disturbances such as the communal flare-up witnessed a year ago in Gujarat will not recur. "The situation on the ground is getting better. The government, thanks to its social spending and various mega projects, is putting money into the hands of the population to spend," says Vyas.

People now increasingly have money to spend, and the law-and-order issues are being better appreciated. With so many changes already complete or under way, India probably already has the ingredients in place for making a lucrative investment pie that could whet the appetite of domestic and foreign investors.