New Delhi: The United States on October 29 said Indo-Pak tensions, recent communal violence in Gujarat and "uncertainty" over disinvestment policies were putting brakes on flow of foreign investments into India.

"There is no question that tensions between India and Pakistan and communal violence dampen investors' urge to come into the Indian market," US Ambassador to India Robert D Blackwill said at a FICCI (Federation of Indian Chambers of Commerce and Industry) meeting on 'US-India Economic Relations - The Missing Piece' in New Delhi.

Communal violence in Gujarat made Americans wary of even visiting India as tourists, he said.

"India is not (an) attractive destination. (For investments to come) long period of stability and long-period of no serious communal violence (was essential)," he said.

Americans, he said, hesitate to invest in India because of the uncertainty over India's economic reforms. "The disinvestment debate in the last two months is only the latest example."

Potential US investors feel Indian taxes and tariffs were too high and there was much government interference over business decisions, Blackwill said.

"US pharmaceutical and biotech companies would expand their presence here if India had a modern legal framework to protect product patents," he said while drawing parallel with China, which had forged ahead of India on most economic measures and was an attractive destination for US investors.

PTI