Foreign companies rethinking India's biz environment

Multinationals face increasingly challenging business conditions in India as the South Asian nation's reputation as a lucrative investment choice increasingly appears to conceal significant risks for foreign investors, experts said.

The comments came as a string of foreign firms are either withdrawing from the Indian market or scaling down operations.

Ding Jihua, deputy director of the Beijing New Century Academy on Transnational Corporations, an institute that focuses on the study of multinational enterprises, said a large number of foreign investors are already concerned about the investment climate in India.