&gt; India has a long history of reneging on deals. Once a deal is struck with most nations, that&#x27;s it. Done deal. With India, they don&#x27;t care - they&#x27;ll do whatever is convenient for them.<p>Most nations will do whatever is convenient for them. ex: If you are from US, GOP says they will cancel the Iran nuclear deal<p>&gt; Hell, even Russia and China won&#x27;t back out of deals once struck. They&#x27;ll piss and moan if it turns out they got the short end of the stick, but they&#x27;ll still honor the deal.<p>Not tue, ex: Hong Kong democracy<p>&gt; I tell my clients to steer clear of India for this very reason - it&#x27;s nearly impossible to know when a deal is &quot;solid&quot;.<p>You just described all the other countries apart from developed countries where there are no severe penalties for walking out of a deal<p>&gt; My issue is that India will play unfair. They have a history of it.<p>Every country does it. ex: Union carbide CEO lived happily in US till he died<p>&gt; That&#x27;s not good for India. Investors will (and are) balking at the idea of entering the Indian market because who knows when India will pull the rug out from under them when the mood strikes.<p>Investors know the risks, Equity Risk Premiums are higher for India (&amp; other developing countries). If investors don&#x27;t invest in India or China due to inherent risks then they might loose out in the long run given that the future returns from developed world will not be great