The Hindu Business Line : `India everywhere'

AT Davos the theme song, as far as New Delhi is concerned, was "India Everywhere". As a publicity ploy, the message could not have been better constructed, specially at this juncture when foreign investors see great potential in Indian investments.

From available reports about what went on in the Swiss resort, one would tend to conclude that some measure of success was attained in spreading further the good word about the country.

This is good news for the economy, particularly for those people who would wager their money on foreign investment being one of the most efficient routes to speed up the growth rate.

But back home, things were in a bit of a mess what with the agitation by central trade unions over the revamp of the Delhi and Mumbai airports through the public-private partnership route, disrupting the flow of air traffic. True, the number of flights linking the metros have been kept unaffected as far as possible and those travelling from one city to another have been able to do so despite problems associated with the absence of trolleys and non-functioning baggage belts.

The central point however is that (as they say) an agitation is an agitation, and when potential investors read about such things they cannot have a very good idea of the place as an investment destination. So, how can the "India Everywhere" campaign and the conditions on the ground be reconciled in the ultimate interest of the national economy attracting the FDI it deserves for faster growth?

It may be argued that the airport agitation is after all not such a mammoth event on the variegated economic scene, which would irretrievably harm the image of the economy and, therefore, too much is actually being made out of it.

This may be correct, but the fact remains that the agitation and its consequences (both on the ground and in the realm of policy-making generally) constitute a blemish on the "reform record" of the UPA Government, one which will probably have to be diligently worked on to be diluted or removed altogether for the "record" to become persuasive once again.

More important is the doubt that such an agitation plants in the minds of foreign investors, namely, that, given the pulls and pressures within the UPA Government on the framing and implementation of reform measures, it would perhaps be sensible to wait a while and consider other competing, investment destinations before deciding to sink their money.

While the foreign investors are entitled to their doubts and forebodings, the stark fact is that the Indian economy would stand to suffer if such investment decisions are delayed. Indeed, this is precisely what is likely to happen if the flow of FDI into the economy is not allowed to be as smooth as possible.

To say this is not to say anything new, but the problem is that while the investment expectations of the international community are growing exponentially, on the national scene there is as yet no sign of the opposition to "reform" measures abating. On the contrary, with some State Assembly elections around the corner, the distinct trend is to rev up the political tempo against reform, in the fond hope of garnering votes. This will cause damage to the economy's growth prospects, which the nation can ill afford now.

This is a contradiction which, if pushed beyond a point, will almost certainly lead to critical instability of the UPA Government, which could in turn be followed by the return of a coalition led by the saffron brigade or even the establishment of a weakling, footloose so-called third front regime. None of these two scenarios would benefit the constituents of the UPA, which is all the more reason why agitations of the sort taking place at the airports should be closely controlled and defused — long before the Rubicon is approached let alone being crossed.

Ranabir Ray Choudhury