Saradha episode not to impact investment climate in Bengal

The Saradha scam will not have any major impact on the investment climate of West Bengal if the state government takes bold steps and pushes ahead reforms, an international marketing expert has said.
"Scandals and scams are not uncommon around the world. Investors are more concerned about business friendliness perception and ability to take bold steps to push for reforms by the government," international marketing guru Jan-Benedictt E M Steenkamp told PTI in an interaction.
The state government is scheduled to hold Global Bengal Business Summit in early January.
Steenkamp said if any scam or scandal weakens the government in doing what is favourable to business only then it has some negative impact. However, such events do not bear any long term impact.

But perception is very important and globally West Bengal had made a bad impact after Tata Motors small car Nano project shifted to Gujarat, he said.
Such episodes create an impression in one's mind that the government is not so friendly towards business. But internationally there is an impression that it was due to "Leftists" as they are known to have a 'not-so friendly attitude' towards private investments and the announcement by Tata Motors to shift to Gujarat came when they were in power in the state, Steenkamp, who is in city for CII-organised Brand Conclave tomorrow, said.

Gujarat on the other hand scaled ahead in sending positive vibes to global investors.

He said the local government could bring in few changes and communicate to the investors to reverse the perception.
Elaborating, he said "Reduction in the number of days taken to give a business licence has a direct impact on attracting investment.
"Reduction in taxes and push for infrastructure will be important steps. On the other hand it can push for articles in international publications and campaigns about its offerings."
About the national scenario, the marketing guru said there was 'hype' around Prime Minister Narendra Modi's image as pro-investment, but so far he has been able to bring in "fewer changes (reforms) than expected".

"But global investors believe he (Modi) will be able to push through more hard reforms," Steenkamp added.