Foreign firms struggling despite India easing red tape

New Delhi

NARENDRA Modi was elected two years ago this week promising to ease India's notorious red tape and unpack regulatory tangles but for foreign firms, doing business in the world's fastest-growing large economy can still be a costly headache.

With a billion consumers and rising middle class, India holds dazzling potential - yet despite signs of change on the ground, high-profile corporate tussles continue to bamboozle investors.

British firms Cairn Energy and Vodafone have this year been hit with fresh bills for billions of dollars in backdated ta…