Though India has inherent strengths to become a major destination for foreign investments, its inability in fully dismantling the roadblocks is coming in the way, while, on the other hand, China has succeeded in attracting huge foreign investment in the last decade, with its sheer determination and suitable economic reform process by actively involving overseas Chinese investors.
This was the common view expressed by most of panelists at the sessions organised on the subject as part of the CII Partnership Summit in Hyderabad.
Addressing a session on 'China-India: Where does the foreign investment go,' David Kilgour, the secretary of state, Canada, said that both the countries contain enormous economic importance from the point of view of global economy.
Pointing out that China attracted $300 billion foreign investment in the last 10 years as against $30 billion of India, he said the key factors contributed for China's success were stable political environment, establishment of special economic zones and high growth rate of its GDP.
Howard Chao, Asia practice head of a leading American law firm, China's overall economic reform was a key factor in attracting foreign investments.
The reforms initiated in 1978 resulted in attracting about $50 billion foreign direct investment in 2001 as against a nominal inflow of such investments in 1989, said Chao who witnessed the transformation in China.
Sunil Sahni, the retired director of Uniliver's operations in China, said that India needs to build global cities with excellent infrastructure for attracting global investments on the lines of China.
Todd Herrick, the CEO of Tecumseh, US, in a clear favour towards India said: "You have all the elements you need--sound education system, rule of law and respect for pattern, which China does not have."
Sharing his own company's experience with India, he said that all the required approvals from the Andhra Pradesh government were received within no time.
Addressing a session on 'FDI inflows into India and NRI participation in India's development,' Murali K Prahlad, the business development director of Sequenom Inc, said that India's credibility with ambiguous objectives, resource constraints and vested interests are acting as impediments in attracting NRIs ideas, money, time and effort.
Satpal Khattar, the chairman of Network India, said, "Roadblocks are not fully dismantled even today. The tragedy in India is its people, politicians and bureaucrats do understand the problem and they know the solution."
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