Has the investor lost faith in India growth story?
That is the question a newspaper asks. The answer is simple. Yes. There is no market left. With their attack on the Danish justice system they have shown that they are not ready to receive international investments. When a company sends employees to a foreign country there is something called security. If the employees can fall victim to local laws even they manage to get out of a country in time, then it is safer not to place money and employees in this country.
Second what is India? The fact is that India is not a real country. It is a central government out of touch with it population which bullied itself to power by forcing a number of the so-called Princely States to be included in India. For an investor it is difficult to target marketing against a pattern of many citizens who have no common identity.
It is too big and uncharted market for any foreign investor to take on and the lack of understanding what a modern state should include when it comes to justice and individual rights of the citizens make it only worse. Last but not least India have shown the will to use armed forces against people who were willing to negotiate as it was the case with the Princely States and later Portugal when the citizens of Goa and other Portugal areas were denied rights like the citizens of Hong Kong in China.
India is not a place for foreign investment. Maybe they should try to develop their ship-breaking industry and pesticide industry instead which are two areas where they have attracted international attention.