Japan’s Prime Minister Shinzo Abe hugs Modi upon his arrival at the state guesthouse in the Japanese city of Kyoto. File photo: AFPPrime Minister Narendra Modi wants state governments to adopt a Chinese method if they want to get a big portion of 100 billion dollar foreign investment that he expects to flow into India soon. After high profile visits to Japan and United States, as well as big talks with visiting Chinese President and Australian Prime Minister, Modi feels the golden era for foreign investment has returned. He has assurances given by Japanese Prime Minister Shinzo Abe and by large companies in United States that there would be a huge inflow. Xi Jinping, the Chinese president promised at least 20 billion dollars in the next five years.
But Modi feels most state governments are not doing enough to attract and retain the investment proposals because of red tape. At an investors meet, organised by the Madhya Pradesh government, Modi said a senior bureaucrat should be appointed, who would handle every detail of the investment, cutting across all departments. Modi said he had done this as Gujarat Chief Minister, and the dedicated bureaucrat reported to the Chief Minister directly. If any department obstructed, then the bureaucrat would get the clearance from the Chief Minister. This was the pattern adopted by the Chinese leader Deng Xiaoping when he opened doors for investment in 1980s. As the communist party was the dominant force compared to the government and had a better infrastructure, party secretaries of cities and regions were given specific responsibility to develop special economic zones, and they would not take interference from the central bureaucracy. Otherwise city mayors were given powers to give all clearances and even give cash bonuses to foreign companies which completed their project before deadline.
Modi is pained that India has the worst record in the ranking of countries which are friendly to business. He also has plans to lessen the intervention of courts and tribunals. Thus, he wants to ensure that once the environmental clearance is given for a project, there would be few or no judicial challenges,which drag on the matter and create uncertainty. But whether public and private interest groups, which have always taken the support of courts, would allow such a single focus on investment to be fostered has to be seen.
Further politically, there is no similarity in the approach in state governments as different parties and coalitions rule in different states. The approach of Congress, Samajwadi Party, Janata Dal(United), Trinamool Congress, Biju Janata Dal, AIADMK, which rule large and significant states would not be the same as that of BJP and its allies. The centre could be accused of political bulldozing and of trying to impose its standards from above. The tendency to move investment to states ruled by BJP and its allies would result in charges of favouritism. But Modi would determinedly push for implementing his own investment agenda, not bothering about the bruising fights.
Tailpiece: Enthused by the response to the first radio address of Modi on All India Radio, several chief ministers have sent feelers to the public broadcaster that it should give them time on local stations.
All India Radio is looking towards Prime Minister's office for a policy direction.
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