Assocham, one of India's associations of chambers of industry and commerce reported today that direct investments in the country are looking at a bleak future. It said further that proposed investments into India both by local and foreign risk takers was down by almost 75%, a figure that spells doom to a once though rocketing economy.

According to their data, there were 697 proposals for investments amounting to US$23 billion this year. Last year's figures show a very different scenario, with almost 3000 proposals for investments made.

This is surprising news, said Assocham, since new policies and reforms have been made by the finance ministry of the country.

"When you measure your rate of return you measure it in the currency of investment. We know there are several private equity investments which are really on the hold because they aren't stacking up - they're stacking up in rupees but not in dollars," explained Dinesh Kanabar, deputy chief executive of KPMG.