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|May 15, 1998||
Sanctions won't affect India: Jardine FlemingA Special Correspondent
Lord Robin Rewick, director of Jardine Fleming, Britain's largest equity fund manager, says India must continue with the economic reforms and that the effect on foreign investment of the economic sanctions imposed by some countries will not be dramatic.
Lord Rewick, who was Britain's ambassador to India between 1991 and 1995, said the sanctions will be self-defeating and affect the economic reforms. ''Though we are concerned about violations of the Nuclear Non-Proliferation Treaty, it is not fair to impose sanctions against India,'' he said. ''They would produce contrary results. India should be helped to take its economic reforms forward.''
Stating that the Union Budget will be crucial for attracting foreign investment, he said he was impressed by Finance Minister Yashwant Sinha's views on economic reforms. ''They are certainly positive and reassuring,'' he said. ''We hope that his views would find expression in the Budget, to be presented on June 1.'' He felt that import duties should not be increased as this would send a negative message during the A HREF=../../busibomb.htm>tough times.
He was of the view that British institutional investors would not be affected by these developments.
However, his optimism may come as surprise to many in the wake of Britain's volte face on the sanctions.
In India to broaden his firm's business operations, Lord Rewick met a number of finance ministry officials at New Delhi amidst speculation that he has brought a special message from British Prime Minister Tony Blair whom he had met before leaving for India.
Jardine Fleming, which has launched 13 global depository receipts -- totalling $ 1.6 billion -- for Indian firms including Videsh Sanchar Nigam Limited and Gas Authority of India Limited, has made invested $ 1 billion in India through its broking sub-division for foreign institutional investors.
Lord Rewick noted that GDR issues were balanced yesterday. He said those investing in GDR issues would look at the strength of the companies and economic fundamentals.
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