New Delhi: According to Ratan Tata, Tata Sons Chairman, the civil nuclear contract with the United States is the best possible things happed to India eventually and the malfunction of which could be a grave setback for the whole Indian economy.

In an interview, Mr. Rattan also stated that if the agreement breaks down it could have an effect on inflow of foreign direct investments (FDI) to the country.

“I believe it is a serious setback to India. I believe the only people happy to see this not happening are probably Pakistan and China,” He said.

While picking up entailments on FDI inflows, Tata said, if the contract doesn’t happen, “It could because I think there would be repercussions and there would be reactions. Moreover, emphasizing on the need of present political system to change and take a re-look at its ideologies. We all need to reinvent ourselves. Even the Vatican reinvents itself.”

“I really do wish we could go back to the days when we had stronger coalitions or single parties in government and a two-party system in the House where you really dealt with issues and serious ideologies. A lesser person would have succumbed to the political pressures. And let me tell you what that would have done. I would have just picked up my stakes and gone to another state. Three, four states are wooing us for that project,” he added.

In the meantime, the business leader also show worry on the delaying reforms in banking and insurance segment and stated it didn’t send a positive message.

“India needs to be a more open financial economy. Therefore financial services, banking, insurance needs to be opened up,” he told.

Mr. Tata stated that the monetary services required to be opened, while putting in some restrictions on market share that’s why domestic companies do not get dominated by abroad companies.