The terror attacks that rocked India's financial capital may depress stocks, dampen tourism and slow new investment, but are unlikely to inflict long-term damage on the nation's economy, analysts and business people said Thursday. "This is a challenge for the government to maintain law and order in the country," said Takahira Ogawa, director of sovereign ratings at Standard & Poor's in Singapore. "At this stage, I don't think there will be any major impact on the macroeconomic or fiscal position of the government."Indeed, Mumbai has a long history of terror attacks -- and has managed to bounce back from them. A series of bombings in July 2006 killed 187 people. Chandiok said Indian companies are going to have to take security issues more seriously going forward, and Grant Thornton's India office has already begun a review of its policies.   more »

The global economic downturn notwithstanding, venture capital (VC) investments have continued to flow into India and China, with both countries witnessing a significant surge in the third quarter this year. According to a study by research firm Venture Intelligence, VC investment in India grew by 36 per cent at $290 million for the third quarter ended September 30. Meanwhile in mainland China, VC investments grew by 22 per cent to $964 million at the end of the third quarter, as per data by Dow Jones VentureSource.   more »