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Top Indian banker and one of the most influential business people in the world according to Fortune magazine and the Wall Street Journal, Naina Kidwai, says the type of investment flows are a good indication about the level of confidence in coalition governments. Top Indian banker and one of the most influential business people in the world according to Fortune magazine and the Wall Street Journal, Naina Kidwai, says the type of investment flows are a good indication about the level of confidence in coalition governments. She says portfolio investments, which tends to be short term in nature has picked up in India although growth in Foreign Direct Investment hasn’t kept up, a sign investors are still not confident about the long term outlook. Excerpts from the interview:

Shamindra Kulamannage: How do you think foreign investors view coalition governments, a feature common in Sri Lanka and India?
Naina Kidwai: In itself the coalition government is not the issue. The issue is whether the regulatory framework is clear to the investors coming in.

In the ideal world governments should aide and abet the investors.

The frame work enables the money to come in.

Coalition governments pull and push in different directions.

May be they don