Will foreigners believe in promises?

"The Centre is exploring a law to protect investments affected by state governments' decisions to scrap contracts as it moves to reassure foreign investors who are riled up by Andhra Pradesh's plan to annul some clean energy agreements." This is the new government in Andhra, led by Jaganmohan Reddy, which decisively beat previous Chief Minister Chandrababu Naidu in assembly elections in May. Jaganmohan is the son of late YSR Reddy who was chief minister of Andhra from 2004 to 2009 as a member of the Indian National Congress Party. When his father died in a helicopter crash in September 2009 Jaganmohan wanted to be anointed chief minister in his place, as is the custom in India. When this was denied by the party he formed his own party the YSR Congress and has now succeeded in his quest. As soon as he came to power he decided to cancel renewable energy contracts negotiated by the previous government but this angered foreign investors. The High Court in Andhra asked the companies to approach the regulator, which is why the Center has decided to pass a law to protect contracts in the future. Joganmohan has also canceled a project to build a new capital city for Andhra, because the former capital Hyderabad was given to Telangana on bifurcation of the state. While Jaganmohan has built a palatial house for himself in Amaravati, his government has served notice of demolition on the house of the previous chief minister on allegations of corruption. Jaganmohan is enormously wealthy with huge properties in several states and was previously investigated for corruption. Such is the rotten state of Indian politics, with the party in power using state agencies to allege corruption on politicians of other parties and a tired electorate believing that 'sab chor hain', meaning 'every politician and civil servant is a thief'. Foreign investment is essential if India is to become a $5 trillion economy by 2024, as predicted by Prime Minister Narendra Modi, wrote Punit Renjen. But to get there, "India's economy is now wrapped around the global marketplace so its adherence to a rule-based regime, predictable regulations and due process must remain unshakable. The rule of law, consistency and independent oversight -- will bring in investment." The central government might pass a law to stop states from breaking contracts but it is destroying the telecom industry with unreasonable tax demands, wrote Andy Mukherjee. Vodafone is the last foreign company left in Indian telecom and this government has not given up on retrospective tax demands of the former government. Modi maybe the greatest orator in India but, where money is concerned, foreigners see the facts. Pesky foreigners.