Fm'S German, Uk Visit To Revive Investor Interest In India

Finance Minister P Chidambaram's forthcoming visit to Germany and Britain has drawn strong interest among chief executives of industry and financial groups in the two countries.

Chidambaram is due to visit Germany from June 3, 1997 to June 5, 1997 and London on June 6, 1997.

The visit comes amid signs of flagging interest in investing in India. But the response to Chidambaram's visit shows that interest in India is strong, even if it is not matched by corresponding investment so far, an Indian official said.

Chidambaram's choice of Germany and Britain reflects investment interest from these two countries, the only two in Europe that have significant investment in India. Germany has been the leading investor in India from Europe.

 

Almost every top German company is sending its chief executives or leading managers to a packed programme of the minister's meetings in Germany, an Indian embassy spokesman in Bonn said.

Chidambaram is due to address meetings in Frankfurt on June 3, in Hamburg on June 4 and in Bonn on June 5. He is also due to meet ministers for economic affairs and economic cooperation in Bonn on June 5.

One of the most significant meetings on the German tour will be one organised by the Indo-German Chamber of Commerce in Bonn, also on June 5. About 200 key decision-makers from German industry are expected to attend the meeting.

The meeting in Hamburg has been organised in association with the Association of East Asian Traders, a strong Asian trade group in Germany. This is an area where investors have shown some of the keenest interest in India.

The focus of Chidambaram's discussions will be to explain aspects of the (1997-98) budget to potential investors, the spokesman in Bonn said.

Chidambaram's meeting in London has been arranged by Asia House, a new group set up by retired British bureaucrats who have an interest in Asia. About 150 people at a very high level will attend the meeting, Melville Guest, chief executive of Asia House said.

The meeting at Asia House will be a closed door meeting where Chidambaram will speak about the budget, Mr Guest said. Many of the best known names in the Square Mile (the financial centre of London known as the City of London) will be there, Guest said.

All the leading banks of Britain will be at the meeting, Guest said. The meeting will also be attended by representatives of top industrial houses such as Rolls Royce, he said.

Despite the political changes, the mood seems upbeat, an Indian official liaising with Asia House for Chidambaram's visit said. It seems that the fact that in the middle of so many changes the policy has remained intact, is turning out to be reassuring in itself.

Officials in Germany and in London say that the keenness in top industry to meet Chidambaram is heartening. There is strong and real interest in escalating investments in India, the official in Germany said.

Chidambaram was due to visit Europe in April, but the collapse of the Deve Gowda government led to cancellation of the trip. Several business groups keen on India had been awaiting the visit to discuss investment issues with Chidambaram.

The meetings in both Germany and in London have been set up to give plenty of time for discussion, officials said. The Asia House meeting takes place over lunch but continues into the afternoon.