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Not long ago it was the toast of investors, but India’s appeal has taken a hit, with bearish sentiment building thanks to worries over stubbornly high inflation and widespread political corruption.

Investor ardour for Asia’s third-largest economy has been cooled by a litany of bad news, from slowing growth, rising prices and spiralling interest rates to paralysis on economic reforms and a string of high-profile graft scandals.

Last week, global business information agency Dun and Bradstreet reported that its India business optimism index had fallen by a hefty 22 per cent quarter-on-quarter.

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Don