Hinduja Group chairman S.P. Hinduja, who recently returned from a trip to India, said here July 22 that the Indian economy “with its underlying strengths could become a beacon of hope in an otherwise bleak global environment.”
The company has acquired more than 3,500 acres in metro areas including Mumbai, Chennai, Hyderabad and Bangalore to develop residential and commercial townships and Special Economic Zones with hospitality, healthcare and related facilities, he said.
These projects will involve an investment of $10 billion to $15 billion over the next five years, Hinduja added.
The group is looking at a portfolio of 10,000 megawatts in the power sector in the medium-term. A 1,000-MW project is already being implemented, he pointed out.
Expressing optimism over India’s economy, Hinduja said the current slowdown is “largely due to external conditions and not, as a section of the business community and media say, by coalition politics, lack of leadership, corruption, etc.”
He said the ruling coalition and opposition parties are united in making India more competitive globally, and noted that India continues to generate credibility in international forums and among global leaders.
Non-resident Indians continue to show confidence in India, with their remittances totaling about $60 billion in 2011, the highest for the developing nations including China, Hinduja said.
He noted that India plans to invest $1 trillion in infrastructure over the next five years. “It is a win-win opportunity for India and the developed countries. The investment in infrastructure will help in poverty alleviation in India and acceleration of economic growth and jobs creation in the investor countries.”
Hinduja said investment priorities should be rural, semi- rural/urban areas. “This will create employment opportunities where they are needed, helping alleviate poverty without distribution of subsidies, gifts and donations.”
The U.K.-based industrialist also demanded that the Indian government reduce the large number of permissions required for launching industries or infrastructure projects.
“The key in this regard would be to organize all central, state and local level clearances before the projects are awarded to investors. This would reduce corruption and ensure speedy and timely completion of projects,” he said.
Hinduja also said the Indian bureaucracy should be “sufficiently galvanized" with accountability and rewards. “The concerned government departments should monitor the projects with a project implementation review chart — having time-lines for completion of different phases of the projects. An incentive scheme should be in place for rewarding the government officials for timely completion of projects," he said.
The Hinduja Group chairman also highlighted the challenge faced by India from the menace of corruption and black money.
"The main causes of generation of black money have been the requirement for funds to meet the expenses of political parties and to fight elections at local/state/national levels; the need for making illicit payments to secure government contracts and influence government policies, etc.," he said.
"This is a cancer which must be addressed. Unstructured, non-institutional political funding is the root of corruption in India. Electoral reforms may be introduced to regularize and make political parties accountable for funds received,” he said.
Source: indiawest.com
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