"There has been a setback because of Singur. The West Bengal government has to sort through its issues and figure out whether it wants investments," Nooyi told reporters when asked about the problems faced by the Tatas in Singur.
Work at Tata Motors' Nano car plant at Singur, where it had planned to invest Rs 1,500 crore (Rs 15 billion) to manufacture the world's cheapest car, has been suspended following opposition led by Trinamool Congress.
"This is a uniquely state issue which has national implications. But it has to be sorted out by themselves (state government) so that foreign investments can come in," she said on the sidelines of a CII event.
When asked if the current atmosphere in Singur would affect the mindset of US investors in India, Nooyi replied in negative.
"As PepsiCo, we have a plant in Kolkata. It's doing very, very well. West Bengal has been a great state for us," she added.
"Democracy goes through its ups and downs. The idea is to work through all these ups and downs. We remain bullish on India and I am confident India will work through its issues," Nooyi said.
She had recently announced plans by PepsiCo to invest $500 million over the next three years to triple its business in the country.
