Financial Daily from THE HINDU group of publications
Monday, Aug 01, 2005
Financial Daily from THE HINDU group of publications Monday, Aug 01, 2005 |
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Industry & Economy
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Foreign Direct Investment Corporate - Trade & Labour Unions Gurgaon incident won't impact FDI inflows, say MNC chiefs Our Bureau
New Delhi , July 31 THE Gurgaon incident involving labour clashes at the Honda facility is unlikely to adversely impact the confidence of foreign investors in India, according to 120 of the 150 MNC CEO respondents in an Assocham Business Barometer Survey. Most of these CEOs, including a vast majority from Japanese firms based in India, said that such incidents are not peculiar to India and such skirmishes can and do happen anywhere in the world, including the most advanced industrial economies. As many as 73 per cent of the CEOs said that the incident was blown out of proportion and given extra mileage. They said that overexposure of the scuffle between the police and workers could have damaged the country's image as an investment destination but for the Government intervention at the highest level. "The unfortunate incident was an isolated case and cannot be seen as a pattern as is clear from the informed perception of the MNCs, including those from Japan, some of whom have been operating in India for the past 50 years," said Mr Mahendra K. Sanghi, President, Assocham. Fifty per cent of corporate heads believed that although India has the institutional mechanism in place, at times events overtake the system, underlining the need for strengthening the mechanism at the operational level. A majority of the respondents said that the incident has once again underscored the urgent need for ushering in modern labour laws that would not only protect the workforce but generate additional jobs, the survey said.
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