CEOs reactions to Indo-China talks varied

23 November 2006

Besides setting ambitious trade targets, Indian and Chinese governments also need to focus on the smaller stuff that actually drives investment. CNBC-TV18 has a report on Chinese President Hu Jintao's historic visit to Mumbai.

Indian and Chinese CEOs in one room could be a sight to shake the confidence of most developed economies. India and China however prefer talking about lofty bi-lateral trade targets rather than fixing the problems hampering investment flows.

Amit Mitra, secretary general, FICCI, says, "We are very disappointed with the investment flows. You cannot have economic relationship between two countries where trade is 75 billion and investment is 100 million."

CEO and MD of TCS, S Ramadorai says, "We need policy clarity, legal framework, negotiation in English, and a policy framework to support it."

Meanwhile, Dr Anji Reddy of Dr Reddy's Laboratories complains there is no reciprocity between the Indian and Chinese pharma regulators. There is also a hefty $350,000 registration fee for pharma firms in China, and CEOs on both sides had similar stories to tell.

Ravi Kant, MD, Tata Motors says, "There is a fairly restrictive auto policy in China, which requires companies to have very substantial investments. It requires minimum setting up of capacity."