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Shri Kamal Nath, Union Minister of Commerce & Industry, today said that the incident in Gurgaon would not in any way affect investor confidence, as this was an isolated and local incident. At a news conference here today, he expressed anguish over the labour-police confrontation in Gurgaon, near Delhi and said that this incident was being inquired into by a judicial commission and would be dealt with as per the provisions of law. He assured the investors, both existing and potential, that India continues to be a safe and investor – friendly country with tremendous potential for growth.
Talking about Japanese investment in India, Shri Kamal Nath recalled that India and Japan have longstanding trade and investment relations. Japan is the fourth largest investor in India, with US$ 2 billion equity investment made in India since 1991. 250 Japanese companies are present in about 300 locations, all over India and are engaged in a variety of economic activities. There are many joint ventures in India between leading Japanese and Indian companies. Suzuki’s joint venture with Maruti, located in Haryana, is one such example of a very successful Indo-Japanese collaboration.
India offers a very attractive investment climate. This has been highlighted by a number of studies undertaken by reputed international organizations. AT Kearney’s FDI Confidence Index 2004 rated India as the 3rd most attractive investment destination. Another survey by UNCTAD last year found India along with USA and China to be the top three ‘investment hot spots’. A World Bank study had placed India among the top 10 reformers in 2003. A recent survey conducted by FICCI had found that 77% of the foreign companies were making profits and another 9% were breaking even. This is reflective of the attractive Indian investment climate.
Industrial relations in India have traditionally been very cordial and instances of disputes are far and few. The number of strikes and lockouts has been consistently coming down and declined by 15% in 2004 compared to the previous year. In fact, the mandays lost due to strikes and lockouts declined sharply by over 50% in 2004 compared to 2003. One isolated incident, though most unfortunate, should not be a yardstick for assessment of industrial relations in India.
Shri Kamal Nath emphasised that to resolve labour – management differences, India has an elaborate reconciliation machinery and special labour courts and tribunals expeditiously look into disputes where reconciliation has not been possible. This arrangement has stood the test of time and resulted in cordial industrial relations in the country.
SB/MRS
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