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Rediff.com  » Business » Gowda's outbursts may hit investment

Gowda's outbursts may hit investment

October 26, 2005 12:30 IST

The recent outbursts by former prime minister H D Deve Gowda and some Karnataka ministers on the IT industries in the state, and in particular on Infosys and its chief mentor N R Narayana Murthy, is likely to make an adverse impact on the investment growth in Karnataka, including Mysore, which is identified as the second growth centre in the state.

This is the general opinion among the industry organisations in Mysore. However, there was also a feeling that the concessions given to major investors like Infosys and Kirloskar, like land cost, should be extended to other industries, including SMEs in Mysore.

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This is what Infosys has invested in Karnataka

CII, Mysore, chief R Krishna on Monday felt these criticisms will affect the overall development of the state. New investors will think twice before opting for Karnataka, he said.

Speaking to Business Standard, he said, "What has happened is IT is not getting recognition like in the past."

This type of criticism, targeting IT in particular, will hamper further growth of Karnataka. The government's attitude will turn against the IT sector."

But, a remedy would be to persuade Narayana Murthy to withdraw his resignation as Chairman of the Bangalore International Airport Ltd. "People are waiting to know how the chief minister will handle the issue," he added.

At the managing committee meeting of the Chamber of Commerce & Industry on October 22, the issue came up during general discussion. Members felt unhappy over the controversy raised by political figures against the industry corporates.

Instead of dragging the corporate sector into a controversy, they should rectify the lacunae in infrastructural facilities, said Chamber general secretary A S Satish.

The chamber is of the opinion that such developments will affect major urban centres like Mysore as it feels that political figures had dragged industry unnecessarily into a controversy. Investments in the pipeline may be hit.

The setting up of the training centre by Infosys in Mysore had given the city an international recognition. If the KIADB land had not been allotted to Infosys, it would have remained barren as it did till the world's best centre established there. Such a growth would only contribute to the development of a city like Mysore, the Chamber secretary said.

However, Hebbal Industry Association general secretary Suresh Kumar Jain took a different view and said that the attack on IT industry would have no impact on future investments.
BS Correspondent in Mysore
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