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Rediff News  All News  » Business » Singur fiasco, a worry for US investors

Singur fiasco, a worry for US investors

October 15, 2008 12:09 IST

American investments in West Bengal are likely to suffer to a certain extent due to the Singur issue.

On the sidelines of  an interactive meet organised by the Confederation of Indian Industry(CII), Beth A Payne, consul general of United States Of America (USA), said, "events like the one at Singur cause American investors to question whether West Bengal can offer essential elements like stability, transparency, rule of law and most importantly respect for agreements and contracts.

American investors are watching how conflicts such as the one in Singur are resolved and noting whether they are resolved quickly. They worry that their workforce will not feel secure. They want to know that their investment project is free from political battles and other entities will not interfere with their business model."

This apart the US India Business Council (USIBC) was to visit Kolkata and introduce many more US companies but due to the Singur crisis all these companies have decided to bypass West Bengal for the time being, since they have raised doubts on "their success when Ratan Tata could not succeed", added Payne.

Singur highlights the challenges that come along with economic growth, industrialisation and globalisation and also highlights the importance of government leadership to ensure that its public understand the importance and benefits of business investment that leads to employment opportunities while ensuring that those who may be displaced or otherwise adversely affected by this investment are adequately compensated and ensure a decent standard of living, added Payne.

BS Reporters in Kolkata