Games fiasco may hit Brand India, says Moody's

MUMBAI: International rating agency Moody’s has said that the Commonwealth Games fiasco could tarnish India’s reputation as a destination for tourists and foreign investment.

In a report released on Friday, Moody’s Analytics — a research arm of the rating agency — has voiced its concerns over the decision by a number of individual athletes to pull out of the games over health and safety concerns. Moreover, there have been hints that teams from Canada, England and New Zealand are considering withdrawing.

These developments have dominated headlines at a time when India should have been showcasing its rising economy, recent infrastructure development, and improved business environment.

“There was a general expectation that a multi-billion dollar investment in the Commonwealth Games would spur economic activity in 2010 through infrastructure investment, tourism promotion, and a general rise in household sentiment that would buoy retail spending. Benefits were expected to continue after the closing ceremony through increased global exposure and an improved international image,” Moody’s said. Instead, the current debacle less than a fortnight before the games are to begin risks tarnishing the event and embarrassing the organisers and the country as a whole it added.

Confidence in India’s infrastructure, its capacity to organise large events, and its reputation as a tourist destination have all been brought into question. The negative publicity could also deter foreign investment and give multinational businesses, considering expansion in India, a reason to think twice.