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Rediff.com  » Business » Honda incident may hit FDI inflows

Honda incident may hit FDI inflows

Source: PTI
July 26, 2005 12:00 IST
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Japan on Tuesday said the labour unrest at Honda Motorcycles and Scooters India could impact foreign direct investment inflows into India, but ruled out its intervention in the matter.

"This is a disadvantage for India's image as an FDI destination and also negative image on Japanese management," Japanese Ambassador to India, Y Enoki said, when asked about yesterday's incident at Gurgaon, in which scores of employees of HMSI were injured in a confrontation with local police.

Over 75 people were hurt when employees, protesting against the management demanding higher wages, engaged in fisticuffs with the police outside the company's plant.

Honda workers, cops clash

Asked whether the Japanese Embassy would intervene in the matter, Enoki said this was a matter for the HMSI management to resolve and the embassy would not like to comment for the moment.

When asked whether the issue was being politicised, he said, "These kind of interference should not be made by political parties. India is a society where protection of weak is largely respected."

He, however, termed it as an "independent" incident and said it should not be generalised too much. "Labour problem is everywhere including in Europe and the US and now in Asia," the Ambassador said. 

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