The Hindu Business Line : Investments need to grow

This is with reference to "India is narrowing growth gap with China: CBC survey" (Business Line, May 2). Though the Commonwealth Business Council report states that India is fast approaching China's growth rate, the article highlights India's lack of transparency and infrastructure.

The requirement of the `wholesale upgrading' of infrastructure demands attention by all the agencies which have assumed the task of building a resurgent India. Also of vital importance is the unaddressed large-scale corruption, which is a real obstacle to development.

Corruption at political and bureaucratic levels has reached at its peak and may drive potential investors out of the country. The wide gap between the minority highly-skilled educated personnel and the vast majority of unskilled workers is only increasing and the absence of a balancing force of semi-skilled workers adds to the problem of investors who are forced to opt for countries like China. The survey also mentions that the tax rates in India are high. This is another core issue that needs an early solution.

The Finance Ministry should now reconsider the whole aspect from an investor-friendly angle lest prospective investors go to other countries which offer a more competitive tax structure. The instability of the policies is another issue that warrants the attention of the powers-that-be. The shift in the Chinese policy in this regard should be seen as a role model. China had no delicacy in accepting the new economic reforms whole-heartedly in the best interests of the country, despite retaining communist values close to its chest. The Indian political leadership would do well to adopt such a fine balance to ensure the country's progress.

C. P. Velayudhan Nair

Kochi

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