Access To Trade Blocs Seen Talks

The Confederation of Indian Industry (CII) yesterday welcomed the governments move to liberalise overseas investments, saying the governments decision will open up a window of opportunity to Indian industry to access the growing tribe of global trade blocs.

Senior CII director S Sen pointed out that it is much better to be a part of the global blocs and develop trade relations rather than trying to build business links from outside.

Indian industry will now be allowed to export cash and build its own image abroad. Liberalisation of overseas investment policy will also give an opportunity to local business groups to repeat their success globally, argued Sen

 

Sen felt that the new norms would help local players since their manufacturing activities can now be distributed globally according to comparative cost advantages. In fact, Indian business groups can now become global players in the truest terms. They can source their goods from different parts of the world at competitive costs, thereby promoting the overall competitiveness of Indian industry, he pointed out.

The CII also dismissed fears of possible capital flight, citing a clause in the original policy which states that the money should be remitted back to the country within a time frame.

In any case, Indias macro balances are strong enough to take care of any threat of capital flight, the chamber asserted.