Cola Issue Could Hamper Business: US

Various business leaders including the United States government have warned India of possible fallout in investments owing to the ongoing cola controversy in India. So are these concerns genuine or are they an act of arm twisting by the US under the influence of the powerful cola lobby who are biggest supporters of political campaigns of some of the big leaders?

The clamour against Coke and Pepsi has been an unwelcome reminder to some in the United States that India, despite more than a decade of economic reforms, remains a hazardous place to do business.   

 "This kind of action is a setback for the Indian economy," Undersecretary for International Trade Franklin Lavin said.

Coca-Cola and Pepsico have been under fire since the New Delhi-based Centre for Science and Environment said 11 of their drinks contained average pesticide levels that are 24 times higher than limits agreed by India's government. The Supreme Court has given the companies' Indian arms six weeks to reveal the ingredients of their soft drinks. Coke and Pepsi account for nearly four-fifths of India's $2 billion soft-drinks market.

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