Policy reversals by state governments dent investor confidence

State governments across India, regardless of political party, have frequently reversed or halted projects initiated by their predecessors. These policy reversals in states including Maharashtra, Delhi and Andhra Pradesh have created uncertainty in the investment climate.

The practice of scrapping or substantially reviewing inherited projects has raised concerns about policy consistency and long-term planning. Investors cite unpredictability as a growing deterrent, with changing administrations often reconsidering major initiatives without clear economic justification.