Surprised. No $100 billion investment pledge like Indians thought they were going to get from China?
FDI is all about the investor getting rate of return and ease of repatriation
we dont offer any investor 27% rates of return on projects (like Pakistan offers to china as per other thread on this forum)
so they reduced the amount
also
the FDI from US is not that the govt is parking or diverting funds in Infra projects
it is business to business investment where the investor takes the risks no fixed assured rate of returns -
so the business to business investments are actually good
Actually, this is possible as the value of rupee could depreciate by multiple folds.
see US cos can invest if they want to or can take a hike
it is true that we want investments to flow into india
but then it is BUSINESS
lets face it,
investors are not doing us any charity by investing in india - they are looking for better returns, repatriation and access to huge markets
we have a huge market whose purchasing power will only increase, a market where they can earn better returns / profits, where they can lower thier costs of production
So to invest 0 dollars or 1 B$ of 41B$ or 400B$ we will let them decide
even if they choose to take a hike some1 else will invest