India’s preparations for the upcoming Commonwealth Games have grabbed the headlines for all the wrong reasons – and led some to question just what impact the delays in construction and questions over safety will have on the world’s view of the fast-growing economy.

Criticism over India’s planning for the Games joins a list of short-term clouds on the horizon facing the country – tax regulations and inflation being two others.

However, today (22 September), Nestle signalled its confidence in the country’s economy with the announcement of plans to open a CHF50m (US$50.5m) R&D site in Haryana state.

Last week, Nestle quashed speculation that it planned to open a food processing site in the state of Orissa but this investment is a sign of the Swiss food giant’s belief in the country’s potential – and its confidence in its PPP product portfolio, which targets low-income consumers.

For all its promise, investors in India face myriad challenges, but Nestle is aiming to be among the front-runners chasing the benefits of operating in the country’s buoyant economy. The world’s largest food maker already turns over CHF1.15bn in sales in India.

Moreover, while FMCG executives talk about the opportunity provided by India’s burgeoning middle class, this latest investment from Nestle indicates that it sees potential in serving the country’s less well-off consumers.