Bangalore: Dismissing Barack Obama’s concerns over deteriorating investment climate in India, Corporate Affairs Minister Veerappa Moily today said certain international lobbies were spreading such stories and the US
President was “not properly informed” about the country’s strong economic fundamentals.
“Certain international lobbies like Vodafone are spreading this kind of a story and Obama was not properly informed about the things that are happening, particularly when India’s economic fundamentals are strong,” he told reporters here.
The perception of deteriorating investment climate in India was not based on economic parameters, but on certain impression of few individuals, entrepreneurs and investors, Moily alleged.
“That is also being removed. Once that perception is removed, I think in 2-3 months, we are back again with a kickstart to pick up the same speed as we had done in the last decade,” he said.
Moily said there was no crisis in India, whereas the US and other countries were facing crisis, “not once but twice in 2008 and 2010″.
“Not even a single financial institution has collapsed in this country, whereas many such things have collapsed in US and other countries,” he said.
He said in the last one decade, India has registered a vibrant growth rate of 8 to 9.5 per cent, “but perhaps for the economic crisis in the US and Europe, the country would have definitely crossed 10 per cent of the GDP.”
“That is the potential of India which can recover back immediately by taking some remedial steps,” he added.
Moily said 55 per cent of the investment in the form of FIIs and FDIs comes from as many as ten countries like Mauritius, Cyprus and Singapore, and only 19 per cent comes from US and other countries.
“Ultimately Prime Minister Manmohan Singh is going to address all these problems and it is being considered. That’s why again the investment climate is picking up,” he said.