Carefully timed arbitration notices from several foreign companies in India send strong signals to the new government that they need to reform the country's business landscape.

There was a dramatic decrease in the number of acquisition deals closed by UK companies in 2013, compared with 2012, according to the Office for National Statistics.

The ongoing dispute between mobile phone operator Vodafone and the Indian government has hit another stalemate, with talks over a retrospectively applied tax bill breaking down.

India's tax policies have come under scrutiny once again, as multinational corporations have hit out at the tax demands being made by the country.

Pressure from foreign investors has caused India's government to rethink its new General Anti-Avoidance Rules, which were passed in 2012.

In a bid to reduce the country's budget deficit, the Indian government is considering the introduction of a new bill, which would require foreign companies to make retrospective tax payments. But international companies unanimously agree that such a law would lead to their retreat from the country.