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Local Tech Wire

RESEARCH TRIANGLE PARK, N.C. – Venture capital financing by U.S. firms in India is plunging, according to a new report.

, Deborah Gage cites a study from Venture Intelligence and the Global-India Venture Capital Association that shows a more than 70 percent in funding through June 30 to $117 million from $414 million a year ago.

The number of deals also fell sharply, down by well over half to 27 from 67 in the first six months of 2008.

What’s happening? It’s apparently more than just a slow global economy.

“U.S. investors in India and other countries are running into more and more competition from local investors, [Naren Gupta, a Silicon Valley VC] says, and that makes it harder for U.S. firms to operate and to retain the best people, who are more likely to jump ship,” Gage wrote.