Admitting that terror strikes in Mumbai will adversely affect foreign and domestic investment, Finance Minister P Chidambaram today said sentiments would reverse in medium to long term and India would continue to remain an attractive investment destination.

"As an immediate aftermath of the Mumbai terror attacks...In the near term, there will be a negative sentiment. Even domestic investment will be affected," he told reporters here.

The country, Chidambaram stressed, will "overcome this negative sentiment and in the medium to long term, investment will continue to be made in India".

The government policies, he added, has made India an attractive destination of foreign investment. "India remains an attractive destination and our policies enable both domestic and foreign investment", he added.

"We have seen this happening in New York, Madrid, London and Tokyo...If we are able to show that we are confident, strong, united nation, willing to confront these inimical forces and overcome them, this sentiment can be reversed in the medium to long term," Chidambaram said.