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The Shekhar Datta Chat

Vikram Mistry: CII does not lobby for any group or company or person. CII is an apex industry association which only places high on the agenda of our country, the concerns of growth of the economy and therefore industrial development. This is the only way the country can become a major economic power in the 21st century and improve the lot of the Indian masses. I am speaking on behalf of the CII only.

vivek (Tue Mar 18 20:16:52 1997 IST):

Mr. Datta, good evening. We are management students at NMIMS. We have done a detailed analysis of the budget.We want to know from you whether the laffer curve effect will work again with the slashing of tax rates. Dr. Manmohan singh has mentioned that it may not work this time.

SHEKHAR DATTA (Tue Mar 18 20:18:41 1997 IST):

Nandini: I have already said so in another panel discussion after the budget was announced that the GDP of the country in 1997-98 will grow at 7% plus. Industry will grow at 12% plus. These are our estimates and our projection barring any unforeseen calamity.

Trupti Divecha (Tue Mar 18 20:18:51 1997 IST):

Why India has not been able to attract the kind of foreign investment that China has?

Elaine Howe (Tue Mar 18 20:18:52 1997 IST):

Mr Datta, you've said that the reforms have taken off on the right track and India is going to make considerable progress but one cannot deny that the last two years have seen a slump in the reform process. Isn't that bad news already?

Trupti Divecha (Tue Mar 18 20:18:56 1997 IST):

How much of an additional load is this populist budget going to add to our already heavy deficit?

JaisalM (Tue Mar 18 20:21:23 1997 IST):

You have been campaigning, I hear, for the reduction in the holdings of FIIs. Is that because your firm too has much at stake? Also, you suggested that foreign partners play a more aggressive role. If so, please clarify how they can function the muggy business environment of India?

SHEKHAR DATTA (Tue Mar 18 20:22:09 1997 IST):

Global Citizen: Any developing country requires a policy document like a budget to trigger the direction of the economic growth. India is no different. Budget is a government's initiative to promote growth and development. Indian industry and Indians therefore eagerly look forward to the budget because it affects their daily lives in respect of prices, availability, future direction and a whole gamut of issues. Therefore it is so important for all of us.

SHEKHAR DATTA (Tue Mar 18 20:24:23 1997 IST):

Park Davis: Single window clearances are meant to attract investment and to relieve the potential investor of the bureaucratic hassles related to any project in India. Therefore any state which has effectively instituted single window clearances is bound to attract more investment than others in a similar situation.

Joshi again (Tue Mar 18 20:24:28 1997 IST):

Mr Datta: How successful are extravaganzas like the Advantage Maharashtra show? I think Laloo Prasad Yadav achieved more on his own rather a large scale jamboree like the one which happened at Mumbai? What do you say??

JaisalM (Tue Mar 18 20:25:52 1997 IST):

You haven't answered...

Trupti Divecha (Tue Mar 18 20:26:21 1997 IST):

What happened to all those extravagant CII claims of attracting foreign investment in India? What has the CII achieved in this context in the last one year?

SHEKHAR DATTA (Tue Mar 18 20:28:29 1997 IST):

Ranjit Dalmia: You are absolutely right that we need to take infrastructure on a priority basis. However, as you know infrastructure area requires huge investments, technology, conducive environment in respect of rules and regulations and long gestation period. Over and above this you need transparent, independent regulatory authority. This is a mammoth task to be addressed all in one go. And in short time, India is beginning to address all these issues including setting up of infrastructure development fund with a huge capital base of Rs 5,000 crores (Rs 50 billion). Foreign investment also has been keenly wooed. But it is not going to happen overnight. We have to be slightly more patient.

GLOBAL CITIZEN (Tue Mar 18 20:28:43 1997 IST):

Thanks for answering my question Mr Datta. However, there was a finer point in my question that I need an answer to. Why is the Indian public not more worried about implementation of the excellent existing laws. Say a crusade for enforcing tax laws properly would itself pull the country out of the mess it is in. Why can't India get its priority right?

CEI mog! (Tue Mar 18 20:28:44 1997 IST):

Mr. Datta, old timers would recognise that CII is NOTHING but a controlled lobbying body, worried only about it's own interests. What, Sir, does CII do for society (it's consumers) in the field of, say, effects of pollution caused by industry? Does CII do anything towards this at all?

Mickey (Tue Mar 18 20:28:47 1997 IST):

Ahem, Mr Datta, may I ask something. You hold that the budget is a damned, er, darned fine one. But methinks you are biased. True it has given your sector a lot, but hasn't it ignored other crucial factors. For instance, the basic infrastructure development in the country? Is there any hope for the sector without bringing in the private sector? But there is no mention of that in the budget. Or is it that you feel that we can get along without any infrastructure development? Kindly comment. ,

SHEKHAR DATTA (Tue Mar 18 20:30:21 1997 IST):

Vivek: I am not an economist and therefore cannot speak authoritatively on the Laffer curve affect. Suffice it to say you are bound to get different views from different economists because there is rarely a "one handed economist" in the world.

Indian (Tue Mar 18 20:30:47 1997 IST):

Mr Datta, The more things change in your country the more they remain the same. What impression do you convey to the world when one ministry passes a project and another vetoes it. No pathbreaking Budget can erase the sour taste left in one's mouth by Enron or by the Tata-SIA affair.

Trupti Divecha (Tue Mar 18 20:32:08 1997 IST):

What happened to all those extravagant CII claims of attracting foreign investment in India? What has the CII achieved in this context in the last one year?

Trupti Divecha (Tue Mar 18 20:32:37 1997 IST):

How much of an additional load is this populist budget going to add to our already heavy deficit?

Trupti Divecha (Tue Mar 18 20:32:59 1997 IST):

Why India has not been able to attract the kind of foreign investment that China has?

CEI mog! (Tue Mar 18 20:33:21 1997 IST):

quote : ''CII's concern is growth of industry and this is the only way India will get into the 21st century as an industrial and economic power, to the benefit of the Indian Masses.....'' Mr. Datta, does CII publish records on how many CII stalwarts have floated and sunk 'industrial' companies in, say, the last 3 decades or so, mainly on public money? If not, would CII make certain records it has on this subject public, currently safeguarded within the LodiEstate office, or is this info delicate? What, by the way, has CII done for the Indian masses so far? Is there even one, say, CII hospital?

Elaine Howe (Tue Mar 18 20:33:23 1997 IST):

Mr Datta,I think a majority of the people associated with the Indian industry and finance somehow exaggerate India's economic position. We have to match with countries like Indonesia, Malaysia, Taiwan even before we can think of competing with China. Why do you think this kind of opinion is floated which is not really correct?

Park Davis (Tue Mar 18 20:33:39 1997 IST):

Mt Datta, All the foreigners who land up in India massage our egos and scratch our backs about how great India is doing and how India is the place to be. Honestly speaking how much of this is correct? On the other hand you hear that investment in the country of Malaysia outstrips us by miles and we are major losers? What is your opinion on this?

SHEKHAR DATTA (Tue Mar 18 20:35:24 1997 IST):

Trupti Devicha: The budget for 1997-98 targets a fiscal deficit of 4.5 percent of the GDP which is an improvement from 5% of this year ending 31st of March. If your comment of a populist budget refers to the subsidy for food, fertilisers, PDS etc. Then I am afraid I do not share your views. The subsidy as a whole in the agricultural sector is still a small percentage of GDP when compared to subsidies given in other developed countries such as USA, France etc. India is largely agricultural based economy with a huge rural population. It is our national duty to support our brethren who unfortunately have not yet reached the minimum level of quality of life.

Trupti Divecha (Tue Mar 18 20:37:10 1997 IST):

Why India has not been able to attact the kind of foreign investment that China has?

CEI mog! (Tue Mar 18 20:37:13 1997 IST):

More from mog! CII, and thus industry, demands transparency from the Government...however how much transparency do you think there is in Indian industry (private sector?)...can anyone question, say, the personal spending habits of a Mg.Dir. as one wud those of a, say, Secretary to the GOI? Even shareholders of a company don't get access to records, so on what basis does CII ask for 'transparency' from the GOI?

Trupti Divecha (Tue Mar 18 20:37:37 1997 IST):

What happened to all those extravagant CII claims of attracting foreign investment in India? What has the CII achieved in this context in the last one year?