The Hindu Business Line : `India must improve IPR record to attract American investments'

Dr David C. Mulford, US Ambassador to India, with Mr Umang Kanoria (right), President, Indian Chamber of Commerce, at a meet in Kolkata on Thursday. — A. Roy Chowdhury

Kolkata , Aug. 18

INDIA should try to improve its maintenance of intellectual property rights (IPR) if it wants to attract more American investment in the biotechnology, pharmaceutical and clinical research sectors, Dr David C. Mulford, US Ambassador to India, has said.

This was one area that required concerted action, he said, addressing members of the Indian Chamber of Commerce and the Indo-American Chamber of Commerce on Thursday.

He said both India and the US shared a major interest in science and technology and India had proved itself to be a world-class player in these sectors.

"As IPR protection improves, US companies will become major investors, contributing capital, top quality science and technology, global management expertise, and new jobs," Dr Mulford said.

He appreciated the Indian Government's policy on the removal of fiscal and regulatory barriers among States with the help of VAT (value-added tax) across the country. He said the move would create a `national market' for investors.

He criticised the Left for opposing the Union Government's disinvestment programme in profitable public sector units. He agreed that it was a politically difficult action as it could lead to job cuts but added that it should be done to improve the national economy and the efficiency of the unit concerned.

According to him, physical infrastructure and energy security were two crucial issues that would determine the development of India. India should develop other sources of energy generation so that its economic development was not hampered by energy shortage.

He urged the Government to develop infrastructure on a war footing. "The most prominent challenge is world-class infrastructure, which India must provide as a platform for sustained growth and rural development, especially in agriculture."

He favoured liberalising the retail, real estate, food processing, small-scale and telecommunication sectors. This would improve rural connectivity and generate more revenue.

Poor government incentives and inefficient infrastructure had led to insufficient private investment in the agricultural processing, storage, refrigeration and marketing sectors, he said.

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