An important factor that propels investors to invest in foreign lands is that the host state will keep its side of the bargain by honouring contracts and enforcing awards even when it loses. But when the host state refuses to do so, it rattles the investors, shakes their confidence in the host state’s credibility towards the rule of law, and escalates the regulatory risk enormously. Sadly, to an extent, this has been India’s story over the last few years. (Read More)
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