Foreign funds now have only one destination - India. That’s the prize for pleasing the Prez.
Will Big Bill bring in the big bucks for India? At least thats what the Indian government and industry seem to believe. After the completion of a well-rounded visit by the president, India Inc is gearing up to face a bigger, yet pleasant, challenge - tackling the globes newfound interest in India.
Industry feels that the visit was planned so that Clinton could see for himself the progress made by India recently and give the world the green signal that its safe to invest here. Now its a question of the rest of the world taking the cue. Says an industrialist: "Whenever we meet a delegation from Japan or Germany, they ask what does the US have to say on this, or why hasnt the US come here? Now that they have the answers, theyll throw their arms around India."
His exuberance could have been called irrational had there been no evidence of a beeline. But the list of visitors following Clinton is lengthening. An Australian delegation led by foreign minister Alexander Downer was in India last fortnight. First to touch down after this was Turkish PM Bulent Ecevit with a business delegation that has an extensive agenda. The best part: the delegation from Turkey, a traditional Pakistan ally, will be restricted to India only.
British foreign secretary Robin Cook also comes in by mid-April with a high-powered group of industrialists and an agenda to hold roadshows on privatisation in Delhi, Mumbai and Bangalore. Visits by German foreign minister Joschka Fischer and his Turkmenistan counterpart will follow. The visits are extremely significant since these countries had taken a strong position against India after Pokhran-II. Their tunes have changed now, and how!
Says Amit Mitra, secretary general, ficci: "India was nowhere on the radar screen of the US till now. The visit will wipe the dust of the past and show India in good light. Clinton has allowed the US to experience India and get a first-hand feel of the country." Mitra feels that the visit was very carefully planned and calibrated to get a check on all segments of the country. "The president cut across the Indian economy in five days. He horizontally covered the Indian society and economy, from industry and economic honchos to the grassroots-level polio camps, and vertically touched the democratic institutions from the president down to the panchayat. Even the pleasure trip wasnt just pleasure; it had an agenda."
And the Americans arent mincing words. Commerce secretary William Daley said last week: "The US can and will do everything necessary to bring the power of prosperity to the doorstep of world markets like India, the prosperity that grows jobs at home."
Experts feel the signals going to the world are very strong as Clinton not only endorsed Indias capability and expressed willingness for cooperation but also ticked off Pakistan, vindicating Indias stand on regional disputes. It will goad the global community to explore India and share expertise with it.
The start of course was provided by the US itself. The five days resulted in business worth close to $4 billion, most of it in high-tech and knowledge-based industries. Commercial signings include Enrons deal to pick up a 49 per cent stake in Ispat Energy and an investment in an IT project, Hughes Network Systems $70-million deal to provide vsat system to SKumars.com and Motorolas deal with Essar Telecom. And if morning shows the day, India is in for a busy time ahead. The US also signed two MoUs with cii. Industry feels that the new relationship will take Indo-US trade from the current $12. 5 billion to $20 billion in two years.
However, now that the dust raised by the Clinton visit has settled, India too has to do some belt-tightening to enable the world to shake hands with it. Says Ajay Khanna, senior director with cii: "We need to make certain policy changes to smoothen business ties. The US government worked much harder with its industry before the visit. We need to do something similar and come out with results in the next few months." A usaid meeting in Kathmandu in January discussed 40 Indian projects threadbare to explore cooperation in these fields and have an agenda ready before Clinton arrived.
India Inc has some plans ready. The visit will be followed up by roadshows on the economy and investment climate led by finance minister Yashwant Sinha across the US and a reciprocal visit by Prime Minister Vajpayee in September which will also have a business agenda. Also scheduled in June is an India-EU summit in Portugal.
Will it change global opinion? Mitra is full of hope: "The visit gave India a geopolitical height over Pakistan. The world will re-evaluate its opinion about Indias potential to become a superpower in 10 years."
If the visit really helps India to make its place in the global sun, one might even forgive India Inc its current euphoria.