Overseas investment in India fell in 2010. One of the reasons why is companies, such as Vodafone, don't find the Indian tax laws favorable.
The Vodafone tax case has other companies worried that they will be subject to unexpected taxes when they try to buy and sell their investments, said Nandan Nelivigi, a partner at the law firm White & Case in New York who advises companies on investing in India. ''Foreigners don't want to avoid paying taxes in India,'' he said. ''But they just want to know what their tax liabilities are.''