Red tapism seen as the biggest stumbling block

The sea change in the Indian investment climate "" following reforms "" has attracted sizeable investment from the non-resident Indian (NRI) community but bureaucracy still remains the greatest roadblock.

The 1,500-strong delegation of NRIs at the three-day Pravasi Bharatiya Divas in Mumbai, spoke in one voice: "Investments can go up at least 10 times if only bureaucrats do their job and government policies do not end up purely on paper."

Bureaucratic hurdle is the major stumbling block for enhancing foreign direct investment (FDI) in the country.

"The government is only talking of change, but this has yet to be implemented on the ground. I hold bureaucrats responsible for delays in our getting clearances," said Paul Nischal, founder president and chief executive, NRI Club International.

This UK-based club represents 15,000 NRIs with business interests in the country.

According to NRIs, the solution for this is a single-window clearance system for investments in the country. They have also given Jagdish Tytler, minister of overseas Indian affairs, a three-month deadline to accomplish this task.

"There are greater opportunities elsewhere in the world. We can take our money elsewhere," said an NRI liquor manufacturer from the UK.

There is no regard for people's time as bureaucrats fail to clear files and grant necessary approvals, said an NRI with interests in the telecom sector.

"These civil servants are affecting India's future," he added.

Many NRIs from the UAE have an equally poor opinion of bureaucrats. "Direct investment in infrastructure is not an attractive proposition because getting the necessary approvals is time-consuming," said Ismail Hukkawala, president, Indian Business Professional Council, representing the interest of six-lakh NRI businessmen.

Some more enterprising NRIs have got around this issue. They understand that the only way to do business in India is by greasing palms and falling prey to the corruption in the country.

"This is not unique to India. Many countries face similar corruption problems," said an NRI business man from Malaysia.

One UK NRI said the best way is to offer a carrot and the stick. "We need to make them (bureaucrats) happy and at the same time, take up our complaints with the ministers," said Nischal.

Even as finance minister P Chidambaram appealed to NRIs to transform their savings into direct investments, many NRIs are more comfortable simply making money from the stock market.