The Hindu Business Line : States vie for a big share of the NRI investment pie

The Secretary General of FICCI, Dr Amit Mitra, said India figures high on investor confidence grades globally and is becoming an attractive destination for foreign direct investment.

COMING TOGETHER: The Gujarat Chief Minister, Mr Narendra Modi, talking to his Jammu and Kashmir counterpart, Mr Ghulam Nabi Azad, at the Pravasi Bharatiya Divas in Hyderabad on Sunday. The others are (from left) Mr Vilasrao Deshmukh (Maharashtra), Mr Nitish Kumar (Bihar), and Mr Oommen Chandy (Kerala). - Mohammed Yousuf

Hyderabad , Jan. 8

THE Pravasi Bharatiya Divas turned out to be a platform for States to woo investments from the non-resident Indian (NRI) community, with each of them vying with the other by showcasing their potential. Chief Ministers made a direct pitch for investments. The Maharashtra Government introduced the Bollywood element, with the star Jackie Shroff and popular director Subhas Ghai articulating their case in a separate session.

The Deputy Chairman of Planning Commission, Mr Montek Singh Ahluwalia, anchored a session in which six Chief Ministers and seniors representatives presented their States' capabilities and investment opportunities.

NRI investments up: Mr Ahluwalia said that NRI investments have increased in the last 10-15 years and called upon States to introduce reforms across sectors to attract investments.

"With separate ratings for infrastructure, States would do well to improve their infrastructure or else they will loose out to more developed States," he said.

However, the entire day-long session was marked by one-upmanship.

`Gujarat is top': The Gujarat Chief Minister, Mr Narendra Modi, said that even though Gujarat was amongst the last States to be carved out, it had one of the fastest growing economies dotted by some 11 special economic zones. While Other States plan to ensure a growth rate of 4 per cent, Gujarat has garnered a growth rate of 13 per cent in the agriculture sector and is seeking to draw parallels with China. "Just sow a rupee and reap a dollar in Gujarat," he said.

`Can't ignore Maharashtra': Responding to Mr Modi's comments the Maharashtra Chief Minister, Mr Vilasrao Deshmukh, said the State is a gateway of opportunities and the first destination for non-resident Indians. Irrespective of where they invest, NRIs cannot ignore the financial capital, given the opportunities and the infrastructure it offers.

Mr Subhash Ghai said that he started off with barely Rs 10,000 and now runs a Rs 250-crore business. This would not have been possible in any other State except Maharashtra and the credit goes to the State Government.

"Bombay is the only city in the world, which can recover from major disasters like bomb blasts and floods within a day and function as usual. This would not have been possible anywhere else but for the spirit of enterprise in there," Mr Shroff said.

Investor confidence high: The Secretary General of FICCI, Dr Amit Mitra, said India figures high on investor confidence grades globally and is becoming an attractive destination for foreign direct investment.

Around 70 per cent of the foreign companies in the country are making profits from their Indian operations and about 84 per cent of them are planning further expansion of their activities. Reforms in infrastructure and labour hold the key to higher and sustainable growth, Dr Mitra said.

The Kerala Chief Minister, Mr Oommen Chandy, said that the State is in the process of receiving about Rs 20,000 crore in investments across two sectors and is amongst the first to have a private international airport. "We are in the process of finalising plans to launch a State-owned airline and are awaiting a Government nod," he said.

The recently elected Chief Minister of Bihar, Mr Nitish Kumar, said Bihar is basically an agrarian economy offering immense potential for post-harvest business, food processing and consumer products.

The Andhra Pradesh Chief Minister, Dr Y. S. Rajashekara Reddy, said that a 20,000-acre knowledge corridor providing basic infrastructure to promote IT, biotech and other sectors is now under way. This along with infrastructure projects across the State offer immense opportunities for investments.

The Chief Minister of Jammu & Kashmir, Mr Ghulam Nabi Azad, said that the State succeeded in attracting about Rs 3,500 crore in investments in the last three years and has the potential to harness about 20,000 MW of hydel energy. Projects worth 4,800 MW have been proposed thus far. After the main plenary, each State had separate interactions with NRIs, giving them an overview of potential areas for investments.

More Stories on : Foreign Direct Investment | NRIs

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