Business
Hardly any foreign investment into India: China daily
Beijing, May 18
Describing Prime Minister
Narendra Modi's "relentless efforts at major power diplomacy" as the
main achievement of his first year in office, a leading English daily of
China said on Monday there is, however, little evidence of foreign
direct investments coming into India.
"For the moment, there is
little evidence of success for foreign investments from private
enterprises," the Global Times stated in an opinion piece barely two
days after Modi concluded his official visit to China.
"In the
end, if any country tries to encourage investments to India, most of the
programmes will be led by the government itself, with most of the
private business sector skeptical about the whole idea," it said.
Pointing
out that though India enjoyed a favourable diplomatic climate due to
its ideal geographical position, the daily in a hard-nosed assessment of
the country said that "even if New Delhi keeps persuading investors how
promising it is to do business in India, the current situation is far
from reassuring".
"Power failures happen frequently. There is a
lack of decent roads and ports for transportation. Labour unrest occurs
from time to time. Attracting investments against such backdrop will
prove to be a major problem," it added.
The article said despite
the fact that Modi's government has brought in a series of measures for
investors, such as establishing special economic zones, free tax zones
and free trade areas, some of these efforts have come up against
resistance by state governments, which "hold great control over adopting
policies for local economic development".
Saying the US has
been trying to cultivate India in its geopolitical strategy to contain
China's rise, while Beijing desires to promote friendly ties with its
neighbour, the article stated: "Modi has obviously realised this, that's
why he started proactive international engagement soon after he assumed
office."
"But India has long adhered to an independent foreign
policy, with no interest in being manipulated to fight in anyone's
corner," the newspaper said.
India, it said, has traditionally
acted very prudently, "which can be seen from Modi embracing Putin while
trying to cement closer ties with Washington at the same time".