Singh said the bad press received by the country will not deter foreign investors, who judge overall economic policies and the state of the economy before taking an investment decision.
"The real test is how the games pan out. They will pan out OK," Ahluwalia told reporters with confidence on the sidelines of the World Capital Markets Symposium, organised by Malaysia's Securities Commission.
The well-known economist was a keynote speaker at the gathering.
Ahluwalia described as "unfortunate" the conditions at the village which attracted large scale international media coverage, but blamed it on the "unusual circumstances" and heavy rains.
"What matters is not the news coverage, but how the games turn out," he said, adding that the situation was under control.
"My guess and hope is that we will have successful games," he said, adding that investors assess the economy and economic policies.
"We will have successful games," he added.