Top businessman says impossible to sell ‘India story’
* ‘Earlier India was mentioned once
every three times China was mentioned’
* ‘Now, if China is mentioned 30
times, India is not even mentioned once’
INDIA: One of India's top businessmen has slammed the government over
its economic policies, saying it is no longer possible to sell the
“India story”. Companies have long griped about India's byzantine rules
and suffocating bureaucracy, but perceived inconsistency in government
policy, stalled economic reforms and a spate of political scandals have
soured the investment mood.
“The world expected a lot from us,” NR Narayana Murthy, chairman
emeritus of Bangalore-based software giant Infosys, said in a televised
interview Saturday.
“We have fallen far short of expectations and it's no longer possible
to sell the 'India story',” Murthy told ET NOW, referring to investor
expectations that Asia's third-largest economy would be a turbo-charged
performer.
“I meet a lot of chief executives outside India and earlier India was
mentioned once every three times China was mentioned. But now, if China
is mentioned 30 times, India is not even mentioned once,” he said.
The attack by Murthy, who founded one of India's largest software
giants, on the Congress government of Premier Manmohan Singh was
unusually outspoken for an Indian businessman.
“We have cut our own legs off by our inaction, by our policies,”
Murthy said.
Data Friday showed India's growth remained stuck at three-year lows
of 5.5 percent, a high figure by developed nations' standards but far
below the near double-digit growth of much of the past decade.
Murthy said that controversial anti-tax-avoidance rules proposed
earlier this year that included a plan to tax takeovers retroactively
had spooked foreign investors. The government is now reviewing the
plans.
To “change the law on a retrospective basis is actually like taking a
pistol and shooting ourselves”, he told India's NDTV.
Overseas-investor confidence has tumbled with foreign direct
investment for the quarter to June sliding year-on-year by 67 percent to
$4.43 billion.
India's ability to attract foreign investment is crucial because it
urgently needs funds to upgrade dilapidated airports, roads, ports and
other infrastructure in order to ease bottlenecks and spur slowing
economic growth.
AFP |