News: 'India's image as FDI destination needs change'

(BL 10/06/2006) Chennai - India has not been a success in attracting foreign direct investments largely because of its negative image abroad - it has failed to sufficiently promote its strengths as a market and a manufacturing hub to access the region, according to Dr D. Kebschull, Chief Programme Coordinator, EU-India Trade and Investment Development Programme.

"Some 100 millions (of dollars) is not what this country needs - it needs billions," he said.

Procedural hassles, concerns on intellectual property protection and poor information flow, particularly about the individual States and their investment promotion programmes, are the reasons for investors not coming here. But the momentum is picking up slowly and India needs to push itself in the market, he said.

At a workshop on foreign direct investment, role of EU-India Trade and investment development programme, he said that investors "still connect India with high risk and difficulties. These are perceptions that India has to change."

Amrit Pandurangi, Executive Director, PricewaterhouseCoopers Pvt Ltd, said that companies abroad were now "taking a second look at India and it cannot afford to miss the bus again."

Investors for their part have to understand that they cannot have a `one-India' programme. They need to understand the diverse nature of the markets and opportunities here and focus on their specific requirements. Initial costs of doing business with India may be high but in the long term the opportunities are good, he said.

The EU-India Trade and Investment Development Programme is a joint programme of the Ministry of Commerce and the European Union - Delegation of the European Commission in India and funded primarily by the EU. The objective of the programme is to assist India enhance its trade and investment performance with the EU.

A. Sahasranaman, Advisor, EU-India Trade and Investment Development Programme, said that some of the concerns are the quality of exports, lack of reliable information on policy, regulation and trade data and procedural delays.