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'Dabhol dispute may not hamper FDI into India'

A day after the United States cautioned India of the snowballing effect of the dispute over the Enron-promoted Dabhol Power Company on foreign direct investment, Germany on Tuesday argued against any such conclusion.

"I do not think that the Enron issue will affect the inflow of FDI into the country. One need not draw such a conclusion", German Ambassador H Richter told reporters in New Delhi.

Richter said Enron was important for India's image.

The ambassador said that while economic reforms were very important for the country, the problem lay in implementing them.

"We have had our own share of problems with reforms and India is also having its quota of the same", he added.

Referring to the redtapism in the country, he said the procedure for approvals could be shortened, adding that there was enough room for improvement.

Asked about IT exports to Germany in the context of US slowdown, Richter said it was "too drastic" to say that India should look at Germany as an alternative destination for the same.

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