Page 83 - IACC Newsletter August-September 2013 Issue 13

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What potential do you see in India given the background of a large no. of big and small scale manufacturing
industries?
I think these large markets don’t have any issues. India now has global enterprises and multinationals. They are evolving
and they are good at research and development. I am not worried about the big global enterprises I am worried about
medium sizes enterprises. They are the ones who face challenges and competition. They can’t make things in a 19th
century environment. They need to enhance and be able to compete.
What can fast growth countries do to drive innovation and entrepreneurship?
They need to invest in people, they need to invest in education from the earlier stage to most advance form, make easy
to start a business, make easy to access capital. They need to cut the unwanted ropes to reach success.
What is the role that private entities can play in driving public policies and affecting mass change?
The scale of infrastructure cannot be done by the government alone. CEOs talk about infrastructure space and power. It
takes years to take permit, put up a facility. There should be investment in people and technology to come and work
here.
What steps should the government take?
They need to think about creating networks, manufacturing research institutes that will tell the needs and challenges of
different manufacturing hubs. Government should come up with extension programs, train farmers, do that for smaller
medium enterprises, through business associations and create a supplier base.
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India, US joint forum on investment here in the works
Forum will aim at enhancing flows from institutional investors and corporate entities, primarily by facilitating individual
proposals and projects. The Indian and American governments are jointly developing a forum that will lay down a road
map for easier inflow of both foreign direct investment (FDI) and foreign institutional investment (FII) into this country.
The forum will aim at enhancing flows from institutional investors and corporate entities, primarily by facilitating
individual proposals and projects. “The US is the leading source of FDI and FII in the world. The Indo-US Investment
Initiative will be led by our ministry of finance (MoF) and the US department of treasury,” said a top official who is
involved in the project. MoF will set up a single-point problem resolution and facilitation arrangement, to ensure
prospective investments do not face unnecessary hurdles and do actually materialize, the official said. It will have a
particular focus on capital market development and financing of infrastructure. It appears an infrastructure
collaboration platform is also being set up between MoF and the US department of commerce to enhance participation
of US companies in projects here. This was envisaged during Prime Minister Narendra Modi’s meeting with US President
Barack Obama in Washington last month.
Finance Minister Arun Jaitley was to meet chief executives of leading US companies during a visit to the US for the World
Bank and International Monetary Fund meetings. In that meeting, the CEOs were expected to raise the issue of the joint
initiative. However, due to health problems, the minister will skip the meeting. Finance Secretary Arvind Mayaram has
gone instead but the meeting with CEOs has been cancelled.
US FDI inflows into India have declined in recent years. It came down from $1.94 billion in 2009-10 to $1.17 billion the
next year and to $1.11 billion in 2011-12. In the next two years, the inflows were each less than $1 billion. India needs
over $1 trillion in five years from 2014-15 for infrastructure development, according to a study by the Confederation of
Indian Industry. As much as 40 per cent of it is hoped for from the private sector.
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