'India cannot do by-pass surgery on S. Asia'

B. Muralidhar Reddy

India is considering a policy to permit all neighbouring countries, including Pakistan, to allow their companies to invest in the country in all potential areas in a bid to integrate its economy with the rest of the region, Indian Minister of State for Commerce and Industry Jairam Ramesh said.

In an interview to The Hindu, the Minister, who is leading a high-level delegation to explore investment opportunities for Indian companies in Sri Lanka, argued that India could not do a "by-pass surgery" on South Asia. "India's globalisation is incomplete and cannot be sustained without closer economic cooperation in the region.

Unilaterally, India should take the initiative to open up its economy for investments from the neighbourhood. We should not be a prisoner of reciprocity."

Ramesh said recently India had lifted a ban on investments from Bangladesh. "I have already written to External Affairs Minister Pranab Mukerjee to consider lifting the ban on investments from Pakistan companies, of course subject to security considerations and on a case-by-case basis."

He said he firmly believed in investment as an engine of growth and the endeavour of the Government in recent months had been to promote Indian investment in the neighbourhood and vice-versa to boost trade.

"Only when such investments are encouraged could trade in the region pick up and the trade deficit be managed."

The Minister is accompanied by officials of the Ministry of Textiles, the Ministry of Information Technology and the Ministry of Commerce and a high-level 15-member business delegation. The Hindu