Policy Uncertainty – India’s Biggest Business Risk
One of the biggest hurdles to doing business in India today is not infrastructure, taxation, or talent—it is policy unpredictability. The Economic Survey 2019 reminded us that India’s own thinkers since ancient times tied prosperity to rule of law ( Dandaniti ) and protection against arbitrary rule ( Matsyanyaya ). In modern terms, this means clear rules, consistent enforcement, and contract sanctity. Investors, entrepreneurs, and global partners all look for this. Yet, over the past decade, India has repeatedly seen sudden policy shocks. These not only create losses for businesses and investors but also erode long-term trust between government and enterprise. Case Studies of Policy Uncertainty Maggi Ban (2015) FSSAI imposed a sudden nationwide ban on Nestlé’s Maggi noodles citing excessive lead/MSG. Months later, the Bombay High Court lifted the ban after independent tests cleared the product. · Nestlé lost sales and investor...