The Hindu Business Line : India seeks FDI that can generate employment — Assures to put 'best foot forward' to help investors

INDIA today made a strong pitch for foreign investment, but clarified that it should not replace or displace employment and should, instead, contribute to the country's efforts in employment generation.

The India breakfast meet in Davos on Saturday saw a panel of three top Indian leaders addressing existing and potential global investors.

The panel, comprising the Finance Minister, Mr P. Chidambaram, the Commerce and Industry Minister, Mr Kamal Nath, and the Deputy Chairman of the Planning Commission, Mr Montek Singh Ahluwalia, assured investors that India would put its "best foot forward" in terms of helping companies that were planning to invest in the country.

The meet was attended by some of the most prominent global CEOs, including Mr Michael S. Dell, Chairman, Dell Computers; Mr Kevan V. Watts, Chairman, Merrill Lynch International Inc; and Mr Andrew Crockett, President, JP Morgan Chase International.

Mr Chidambaram said India was keen on becoming a major hub for manufacturing and would provide world-class infrastructure such as roads, ports, power, etc. for those who want to invest.

At the same time it would also be investing in a sound social infrastructure including shelter, drinking water, health and education for its people.

Mr Nath said the Indian FDI policy was domestic market-driven and that foreign investment should not replace or displace employment as the country is committed to FDI being directed towards job generation.

He said there was a lot of scope in the country's agriculture sector as there were 650 million people engaged in agriculture, but agriculture only contributed to 22 per cent of the GDP.

"We do not have unemployment, but under employment," he said. On the issue of investing in infrastructure, he said the country was looking at public-private partnerships as the way forward.

"We currently have a $350-billion engagement with the global economy," he said.

Mr Ahluwalia, answering a query, said policy reviewing was high on the agenda.

With regard to infrastructure development, he said though the Government procedures seem to be dilatory and a lot of inter-ministerial co-ordination was required, there was a mechanism that had been put in place by the Prime Minister to tide over the problems. Citing the roadblocks that arose in the Mumbai-Delhi airport modernisation project, he said: "Increasingly most of the States are getting conscious of the challenges and it has been resolved."

The CII President, Mr Y.C. Deveshwar, when asked about how the industry views the changes taking place in the country, said the one major thing that the reform process had done was to unshackle Indian entrepreneurship.

Referring to increased public-private partnerships, he said the industry had managed to convert daunting threats into opportunity.

On the agriculture front, he said the private sector could make a great contribution in turning the country into the food basket of the world.

While urbanites had increased their spending, the rural population would also follow suit if it had adequate social security.

"Rural farmers today save for the rainy day as there they are dependent on the vagaries of nature," he said.

On the potential of Indian industry, he pointed out that companies here were the second largest Demming Award winners outside of Japan and also the second largest recipients of private equity outside of Japan.