India has become a significantly less attractive place for foreign companies to invest in, a new global survey has said.

In its latest survey of business leaders' attitudes towards foreign direct investment (FDI), the management consultancy AT Kearney places India fifteenth - down eight places from a year ago.

Several other large emerging markets, including Mexico and Poland, saw their position weaken compared to the last survey in February 2001.

The survey measures confidence in investment performance - not necessarily an indication of where companies are likely to put their money.

By this measure, the most attractive foreign investment destination was China, which grabbed the top spot from the United States for the first time.

Stable economic growth and politics together with World Trade Organisation entry and its hosting of the 2008 Olympics are thought to have helped China improve its position.

Uncertainty

Rahul Chadha, a senior manager at AT Kearney's Bombay division, told the BBC's World Business Report that India was missing out due to both political events in the region and a slowdown in the country's economic reform process.

Tensions with Pakistan over Kashmir had weakened India's position in the league, she said.

"The geopolitics of the region have caused a certain amount of uncertainty which always impacts investor sentiment.

"The reform process, which the government was actually hoping would gain some momentum during the year, has not actually happened so that has impacted investor sentiment as well."