Foreign investors are petrified about investing in India as there is lack of transparency in dealing with them, Lord Swraj Paul, founder of Caparo Group, has said.

India needs less policy but very transparent policy, Paul told BusinessLine in an interaction ahead of his Dr Stya Paul inaugural lecture in the Capital on Friday.

“Whatever sector of the economy you want to open, go ahead and do it. You (Government) make the rules and tell the world these are the rules. If you (investor) fit in (these rules) go ahead and do it (enter India).. it should be conveyed that nobody in India will then stop you.

But if you are not able to fit in, don't even come to us (government). This should be the way it should be done but not being done here right now", he rued.

With such an approach, an investor will waste less time of the Government and there will be less chances of corruption, he pointed out.

“It will also make his or her (investor) life easier by making this decision”.

Corporate Governance

The legislative changes brought about by the new company law would only work if leaders of business embrace not only the letter of the law but also its spirit, Paul said.

"If you want to do business in today's world, you cannot ignore governance. And setting up structures, committees and rule books is not enough.

The Owners, the Chairman, the Chief Executive, and the Board all need to lead by example. It is the top which has to set the tone", he said recalling Nobel Laureate Professor Samuelson's quote "The bottleneck is always at the top".

>srivats.kr@thehindu.co.in

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