The attacks in November on two prominent Mumbai hotels were aimed predominantly at foreign business executives in India and follow a period of trade liberalisation, which has attracted multi-billion dollar investments from international companies, including Wal-Mart, Tesco and Vodafone.

Saurabh Mukherjea, the head of Indian equities at investment bank Noble in Mumbai, said the acceleration of the financial crisis in September meant that India was already having trouble attracting funds.

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“This is the time of year when many investors are reassessing their exposure to India, so the attacks could not have come at a worse time,” Mr Mukherjea told the Financial Times.