Why is FDI into India declining?

Foreign direct investment (FDI) in India fell by nearly a quarter in the first seven months of 2010 and the much-publicised chaos around preparations for the Commonwealth Games has added to worries foreign firms could put off further investment.

A UN survey found investors ranked India as the second top-priority destination for FDI this year, replacing the United States, after China.

Following are some questions and answers on foreign investment flows into India.

Text & Images: Reuters